Rothbard vs Kirzner

Varieties of Austrian Price Theory
- Highlight Loc. 75-79  | Added on Monday, November 21, 2011, 07:21 AM

Thus, in his memo, Rothbard vigorously and repeatedly objects to specific concepts, techniques, and models that Kirzner deploys in his analysis of the market economy. These include, for example: production isoquants; the horizontal demand curve; the point elasticity formula; the analysis of two goods or two factors rather than many goods and many factors; the concentration on a nebulous and hybrid “short-run equilibrium” in production theory; the narrow analytical focus on the single firm rather than on the interdependencies between firms; the characterization of the firm as paying rather than receiving interest.