Miyachi's solution is not so simple. You have a new computer. Some of the value will be transferred to the product today. You have no idea how long the computer will last; when it will become obsolete. Unless you have foreknowledge of the future, you cannot know how much value transfers to the product.
I wrote about this in more detail a few years ago in the Cambridge Journal of Economics. -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail [EMAIL PROTECTED]
