ABSTRACT
We have shown in the last chapter that the decisions of the entrepreneurs in our many-product economy on any one day as to what to produce and what prices to offer for their inputs are essentially the same as those discussed at length for a many-product economy in The Stationary Economy, provided that we know at 8 a.m. on day 0—when the production decisions are made—what selling prices are expected to rule at 8 a.m. on day 1 for the outputs of the productive processes of day 0. We must accordingly turn our attention to the factors which determine the selling prices which, at 8 a.m. on any one day, are expected to rule at 8 a.m. on the following day.
