ABSTRACT
This chapter serves as a companion to Patrick Newman, a concurrent paper written by the present author to discuss the evolution of Murray N. Rothbard's approach to production theory and its implications for modern theory. Analysis of producer activity is vital; not only will it provide the final clue to the analysis of consumer goods' prices – through discussing the determination of the size of the stock thrown on the market – it is also the key to the analysis of the determination of the money prices of factors of production. For each of the producers, the demand curve for his individual product is elastic at the competitive price, and therefore there is no way to achieve an extra monopoly gain by restricting production and raising price. Particularly likely to be restive under a cartel system are the more efficient producers, those who are making larger profits, and who are eager to expand their business.
