[OPE-L:1657] Re: Temporality vs simultaneity

chaion lee (conlee@chonnam.chonnam.ac.kr)
Sun, 31 Mar 1996 20:26:10 -0800

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dear Andrew,
Please refer to the example which I took in the reply to Massimo.
The so-called equalization of the profit rates should refer to the
profit rates based on the present replacement costs and returns.
His actual profit rate was 80/180. In terms of replacement costs,
he got the gain 20 compared to the 80/160 (he actually won 100 as
the profit). What profit rates are to be equalized? The historical,
individually gained profit rates? Or the objectively computed rates?
I still think what is relevant is the 80/160, which should rule in the
next period. Moreover, I do not think he could get the profit 100,
he is still pressed by the latent (to-be-appeared) cheap products.
He would have to sell his products below the production price even
before the cheap products come out on the market.