ECOS2201 - CIRCULAR PRODUCTION PROCESSES AND THEIR...

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MAIN POINTS : The concept of viability in production as a technological requirement: one and two sector models The system of prices in a multi-sectoral model: symmetry with the quantity system Viability in the quantity system and its connection with viability in the price system: both as a technological requirement The notion of the physical “surplus” and its connection with “profit”: the surplus as a necessary condition for the existence of profit CIRCULAR PRODUCTION PROCESSES AND THEIR VIABILITY
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Define y c = Y c / L as output per worker and a cc as the unit input requirement of corn. With corn required only for consumption of workers: 0 . - L c Y c c . y Y L . c a c c cc 1 = = 0 - c y c 0 1 - cc a Viability in the one-sector "corn" model : Viability requires 0 1 - c y c If => 0 - c L Y c or
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Viability in the two-sector "iron / corn" model : With labour requirements subsumed in the input - output technology given by i i ii i ci
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ECOS2201 - CIRCULAR PRODUCTION PROCESSES AND THEIR...

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