ABSTRACT
The subject of this essay is the determination of the amount of investment undertaken at a given time by a single entrepreneur. He intends, for instance, to build a factory for the production of a certain product. He is faced with given market conditions: he knows the price of the product in question, the level of wages and the prices of raw materials, the cost of construction and the rate of interest. Besides, he has some rather vague ideas as to the probable future change in prices and costs. This knowledge is the basis for the planning of investment, i.e. for the choice of the amount of capital K (measured in terms of money) to be invested and the method of production to be applied.
