Saturday, July 23, 2005

The Essential Problem of Societal Organization

The production of all goods, except utility and ideas, exhibit increasing private returns to scale.

Just wanted to get that in (virtual) writing.
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1 Comments:

Blogger Isaac said...

Could you elaborate...This seems right but I'm not thinking straight and so can't understand why, if the production of cars has increasing private returns to scale, this presents a problem for social organization. Is it that this is impedes the need to cooperate? But the fact that one can specialize in producing cars is a result of a kind of vast social cooperation.

Thanks.

10:27 PM  

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