The Demand Curve for a Factor of Production: Comment.
The article critically analyzes the concept given by economist R. R. Russell that the demand curve for a factor of production cannot slope upward under conditions of perfect competition in all markets. This concept is considered invalid for a number of reasons, even though his conclusion is valid. M...
| Publicado en: | American Economic Review Vol. 55; no. 4; pp. 856 - 862 |
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| Formato: | Artículo |
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American Economic Association
Sep65
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=4503741&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 4503741 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 00028282 AER jtl: American Economic Review issn: 00028282 maglogo: N pubinfo: dt: Sep65 vid: 55 iid: 4 pid: 22 pub: American Economic Association artinfo: ui: 4503741 ppf: 856 ppct: 6 formats: tig: atl: The Demand Curve for a Factor of Production: Comment. aug: au: Winch, David M. affil: Associate professor of economics at the University of Alberta, Edmonton, Canada. su: Demand function Factors of production Elasticity (Economics) Perfect competition Russell, R. R. Economists sug: subj: Demand function Factors of production Elasticity (Economics) Perfect competition Russell, R. R. Economists ab: The article critically analyzes the concept given by economist R. R. Russell that the demand curve for a factor of production cannot slope upward under conditions of perfect competition in all markets. This concept is considered invalid for a number of reasons, even though his conclusion is valid. Moreover, the validity of the conclusion is itself of questionable usefulness, for it is dependent on incompatible assumptions. The article questions Russell's choice of assumptions. He assumes that the firm can expand output when the price of one factor falls, although the product price remains constant. But if all markets are competitive, the factor price must fall for all firms in the industry, and if the product price is to remain constant when all firms expand, the market demand curve must be perfectly elastic. This is a theoretical impossibility. A general proof of the proposition concerning the downward slope of the demand curve for a factor should take account of a consequent change in product price, and should also include the long-run case as well as the short run. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 1965 holdings: @attributes: islocal: N |
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