8
W = JtY + W o = Y + ( 1-a) Y o (1)
( When Y =Y o , W =Y q ; from this follows that
V ( 1 - a) V ( Y o =W o + * V
P =Y - W = ( 1-JL) ( Y - Y 0 ).
P = I + C .
c
i+c c
Y =
T -X
+
I +c + w
c o
1 - X
(2)
&)
If everything is expressed in terms of output capacity we
divide through by this magnitude and obtain expressions for
utilisation u, break even point u q , wage cost and supplementary
wage cost w and w q in terms of capacity output, profits p =
=i + c in terms of capacity output. See graph,
c
w = 2lu + w o = 3'U + ( 1 - A.) u Q .
p = ( 1 - X ) ( u - u Q ).
u = + u = ^ + U
1 8 1 . *
(1)
(2)
(3)
We can see from the graph that a reduction of the
accumulation rate would lead to a reduction of utilisation u.
The reestablishment of the former ( "normal") utilisation u
can be accomplished by an increase in X . This amounts to
a squeezing of the profit margin 1 - X or marginal share of
profit in income which I assume is determined by the market
forces of competition. This will also push the break-even point
towards the right.