Varieties of Austrian Price Theory

Varieties of Austrian Price Theory
- Highlight Loc. 429-32  | Added on Friday, November 25, 2011, 03:14 AM

8, 178: Contrary to K. it is an a priori generalization that “returns to scale” must be constant. (If, of course, the roster of enumerated factors is complete, and if they are really homogeneous). This is a priori true because of the nature of the law of cause-and-effect. For, if: 2A + 3B + C would yield 10 P (where A, B, and C are factors, and P is the product), then, by simple addition, and law of cause-and-effect, 4A + 6B + 2C will yield 20P.