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Productions. Or, in other words, the first approach is expressed in terms Movings lengthways isoquanta of issue and changes in replacement limit rates Between factors whereas the second is formulated in terms of shifts,
Parallel to axes of the same diagramme, and respective alterations in the limiting
Product.]
For our analysis we can take advantage of the digital example resulted
Just for various firms, having admitted that for main components
The capital of any separate firm rate of turnover makes 6 - for the sums,
Invested on current payments of wages, 1 - for working parts
Machine tools, etc., 1/10 - for heavier equipment, buildings etc. We
Again we will assume that after the uniform internal norm was established
Returns in 6 %, the prices for production were lifted on 5 % and that thereof
The internal norms of return received from various kinds of the capital, were lifted,
As earlier, to 36 %, 11 % and 6,5 % accordingly. Such position is obvious can
Only time, if parities between forms of the capital with different speed
Turn-over can vary. In the formed situation it will be favourable
To redistribute the operational expenditure so that to increase investments in the capital with
High and to reduce investments in the capital with low rate of turnover.
Redistribution will proceed, while expected norm of return again not
Becomes identical to all forms of investments, and current investments will be
To be made in such new structure while the same conditions and while dominate in
The end of the ends all capital of firm will not be adapted for these new conditions. In
Result for firm the uniform internal norm of return will be established new and again
Somewhere in between extreme indicators in 6,5 and 36 %, and at this new norm of return
The aggregate profit which can be received from the limited resources of firm
Profits), will reach the maximum.
Though for each firm the internal norm of return becomes again uniform, it to those not
Less remains unequal for different branches and (to a lesser degree) for
Different firms in the same branches. At what level it will be established
The internal norm for this or that firm, will depend on the initial
Structures of its capital and from that, will increase how much costs at
Any transition to less capitalist methods of production. However in general
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