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It is represented, however, that this widespread opinion is based onMisunderstanding. Unconditionally, a parity, in what basic and a working capital
Are applied in production, can vary only gradually and slowly, in
Current of the long period of time. But matter is not in it. Us interests not
Parity between existing stocks of the core and a working capital, and that Parity in what firms direct the operational expenditure on updating (or
Replenishment) two kinds of capital assets. And daily experience, and the general
Reasons force to think that this parity will be extremely Changeable in the short-term period.
The erroneous impression forms, possibly, those illustrations of transition from
Less to more capitalist methods of production, which usually
Are used in textbooks at the description of alternative conditions of the long-term
Balance. Known examples "changes in production methods" - about replacement
All machine tools of one type machine tools of other type, replacement of less durable
Short, processes, on the average longer, - put an accent on that The moment which would really be represented unimportant in short-term
The period. To understand, how the same tendency can act with not smaller force
In the short-term period, we should overcome the habit to "the comparative
To statics "from textbooks and to try to think more realistically of the concrete
Decisions, constantly to accept which it is necessary businessmen.
In the taken away frameworks we can give some illustrations. But I hoping,
That they will show, the circle of the possible is how much wide even on very short period
Variants.
We need to present the businessmen equipped during any given moment Certain stock of the equipment of long use, only small
Which part requires replacement during any short period of time. If conditions
Remained same, as well as were, they would continue the period behind the period
To invest the received depreciation charges in the equipment of the same Sorts. But they will arrive so simply because it is the most profitable Method of use of means available for them, and we should not assume that
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