this is still the spinal element in most macro interventionists models
and its wrong
there is much more sub maxima unstable forces at work
capitalism ...corporate capitalism is systemically irrational
the performance less then a better arrangement of production could achieve
however only comparative dynamics can establish this
not comparative statics
its dynamic performance that institutional arrangements impact
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corporate set prices both at the list level and the transaction level
do what they do
and produced quantities are what they are
because that set of choices looks most profitable and is also ....feasible
at the moment of decision
wages ??
they trail along for the ride these days
none of these dynamics are yet modeled of course or simulated
and feasibility has a great deal to do with credit flows and equity holder scrutiny
