[OPE-L:875] Re: valuation again

glevy@acnet.pratt.edu (glevy@acnet.pratt.edu)
Mon, 29 Jan 1996 18:31:23 -0800

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Michael P. wrote:

> 3. As we move toward a greater reliance on constant capital [where fixed
> costs loom large] a competitive economy will make prices move toward
> marginal costs. As a result, fixed capital might suffer rapid devaluation.
> Under such circumstances, capitalism will not be viable. [Witness the U.S.
> airlines] <snip> [emphasis added, JL]

Could you please explain the connection between the first two sentences and
that part of the third sentence which is highlighted? You must have
realized that someone would ask you about this, right?

In OPE-L Solidarity,