Brenner on competition

michael perelman michael at ecst.csuchico.edu
Mon Sep 14 14:52:57 PDT 1998


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



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