Money, Monopoly, and Market Intervention, Lecture 2 with Robert Murphy - Mises Academy
Production and the Market Process, Lecture 8 with Robert Murphy - Mises Academy
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Transcript of Production and the Market Process, Lecture 8 with Robert Murphy - Mises Academy
![Page 1: Production and the Market Process, Lecture 8 with Robert Murphy - Mises Academy](https://reader033.fdocuments.in/reader033/viewer/2022060200/5598a6611a28ab7e638b466e/html5/thumbnails/1.jpg)
Production & the Market Process
Robert P. MurphyMises Academy
September 7, 2011
Lecture 8: 2nd Half of Chapter 9 of Man, Economy, and State
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2nd Half ofChapter 9 of MES
I. Backward Bending Supply Curves?
1.Psychic Benefits of Labor
2.Capital Accumulation
and Labor Productivity
IV. Keynes: Orthodox Economists Assume Full Employment
V. The Fetish of Cost Curves
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I. Backward Bending Supply Curves?
![Page 4: Production and the Market Process, Lecture 8 with Robert Murphy - Mises Academy](https://reader033.fdocuments.in/reader033/viewer/2022060200/5598a6611a28ab7e638b466e/html5/thumbnails/4.jpg)
A. Labor Supply
![Page 5: Production and the Market Process, Lecture 8 with Robert Murphy - Mises Academy](https://reader033.fdocuments.in/reader033/viewer/2022060200/5598a6611a28ab7e638b466e/html5/thumbnails/5.jpg)
B. Land Supply too?
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II. Psychic Benefits of Labor
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A. Education/Training “Costs”
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B. Risk Premia
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C. Demand for Labor Still Determined by DMVP
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III. Capital Accumulation and Labor Productivity
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IV. Keynes: Orthodox Economists Assume Full
Employment
For more, see optional reading at:
http://mises.org/daily/5464/The-Critical-Flaw-in-Keyness-System
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V. The Fetish of “Cost Curves”
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A. Notes on Cost
●Cost is opportunity cost, value placed on next-best alternative.
●Costs are not measured in money expenditures.
●Costs anticipated, and never “realized.”●Sunk costs are sunk.
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B. Problems With Cost Theory of Value
●“Costs” are simply prices.●Ultimately subjective valuations determine
“costs of production.”●Cost theories can at best explain
reproducible goods, and give their long-run equilibrium prices.