Full text: Small and Big Business

10 
composition of capital. 
Many economists for a long time apparently hold views 
about the capital-coefficient which have no sufficient 
basis in facts. She reason may be the enormous role of 
heJt*, ACc p ^ex 
tradition aadr-the lack of information in economic 
thinking. 
. 
She economists prejudice stems from the following ideas: 
(1) a belief in capital accumulation as the only vehicle 
of economic progress (strong virtues of SoAT\-\v^ 
c ^ 
(2) the idea that economics is a matter of substitution 
fin tn 4 ~b' 3 - the product is re 
garded as fixed. Shis could be justified only if we are 
everywhere far in excess of the "optimum scale of pro 
duction".) 
44 -rj a, U 
(3) the idea that we must in practice -be in the range 
of diminishing return^. 
In analogy to Ricardo^)icture of a fixed amount of land 
to which successive doses of input of labour and capital 
are applied, we have to picture a given amount of labour 
to which successive doses of capital are applied. 
Shis picture, however,would not be adequate to represent 
the conditions of an individual plant under modern industrial 
, . , . , keSi4 C jyi ev.Zejc 
conditions, because feteeee may very well involve a reduction 
of the labour employed per plant. We plot therefore capital 
per man as a function of output per man. She gradient of a 
straight line joining the coordinate centre to a point of 
this function - the capital coefficient - will decline over 
a certain range; later on we can assume for general reasons
	        

Note to user

Dear user,

In response to current developments in the web technology used by the Goobi viewer, the software no longer supports your browser.

Please use one of the following browsers to display this page correctly.

Thank you.