[OPE-L:4361] Further comment on John's example

Allin Cottrel (cottrell@wfu.edu)
Tue, 11 Mar 1997 13:44:39 -0800 (PST)

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Here's a suggestion: In the case of the two capitals that
John cites, competition should enforce a solution where the
prices of the commodities are such that the annual gross
revenues are $2100 and $2226.75 respectively. Thus at the
end of each year...

* Capitalist 1 has $1000 to replace his materials, $1000 to
meet his wage-bill, and $100 profit.

* Capitalist 2 has $1000 for materials, $1000 for wages,
$200 profit and $62.75 in depreciation allowance, which he
invests at 10 0n order to end up with $1000 to replace his
machine at the end of 10 years.