Saving "the Market” out of Cambridge: “Supply Curve”
Suppose there in town are five manufacturers of widget: J. Watt & Co. with a machine of steam engine, N. Otto & Co. of internal combustion engine, N. Tesla of electric motor, S. Jobs of CAM, and S. Altman of AI. Over the quarter as the communal accounting period, all the firms are fixated each with a single unit of machine or “physical capital” as called in economics. The only way to aggrandize the quantity of production is hiring more “labor” as in economics. The capital cost is “sunk” and does not count as far as the particular quarter is concerned. In other words, there is no such thing as a “fixed cost.” With the machine “invariable,” does the labor cost of production remain constant as the unit of widget multiples from one, two, three and on? Unfortunately No, no, no! Each step forward, the “marginal production cost” in...