ABSTRACT

This chapter describes the reinterpretation of the free disposal axiom which makes it compatible with the law of conservation of mass: instead of setting the physical disappearance of the freely disposed goods, it assumes their storage in a gigantic dropbox. It suggests pursuing the exploration until the discovery of another type of goods, the ghost goods, which do not appear on markets but play a role in their working and are positively priced. The chapter explains the important problem of capital theory that concerns the marginal productivity of capital. Marginal productivity deals with the production per head and is equal to the ratio between an infinitesimal change in the value of the product and an infinitesimal change in the value of capital. The chapter considers an Austrian model and proceeds to an estimate of that magnitude in the consumption-good industry.