Brenner on competition

[michael perelman]

The idea that fixed capital is free reflects the fact that the second hand
markets for fixed capital are weak (but not non-existant), thus the cost of
using the capital is virtually nil.

christian a. gregory wrote:


> michael perelman wrote:
>
> >I do not see much recognition of Rakesh's last step.  Brenner describes
> >pressures to lower rates of capacity utilization and even to scrap old
> >capital, but I did not see any acknowledgement of the devalorization of the
> >remaining capital stock.
>
> yeah, he even says that fixed capital is understood as "free" (26), which
> doesn't make much sense to me. to anyone else?
>
> best
> christian

--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 916-898-5321
E-Mail michael at ecst.csuchico.edu