ABSTRACT
This chapter focuses on the capital-labour isoquant in the consumer good industry that is implied by various models of production of the Hicks-Samuelson-Spaventa 'corn-tractor' kind. The function defining the technical possibilities is very simple and there is no reswitching but the capital-labour isoquant in the consumer good sector is far from conventional in nature. The chapter considers the familiar corn-tractor model of production in which, for a reswitching technique, a specific kind of machine can be used by labour to produce either machines of the same kind or the consumer good. Machines are fully used up in one period of production and there are constant returns to scale. It explains the Neri Salvadori's contribution to the literature on capital theory and discusses the certain familiar themes in the capital theory literature but push them in an unusual direction.
