ABSTRACT
The labor component consists of two separate factors: individual work; and collective work. These factors may also be called direct work; and entrepreneurship. The former requires individual rewards, the latter collective rewards. In a capitalist or etatist firm, the owner or his representative is an entrepreneur. In a labor-managed firm, the society is the owner, and all the workers are society’s representatives. The only reasonably elaborated theory about the efficient allocation of resources available at the moment is the neoclassical theory. Equal opportunity for a producer implies equal opportunity in developing one’s innate talents. The entire social product may be divided into two parts: market product and nonmarket product. Consumer equality implies that personal effort determines variations in income. This is the normal case and can be applied to a great majority of producers whose abilities are considered to fall in the normal range.
