On Fri, Sep 25, 2009 at 2:21 PM, Julio Huato <[email protected]> wrote:
> Indeed.  Saying that a "resource" or a "good" is scarce is the same as
> saying that the productivity of the labor that (re)produces is a
> finite magnitude.  If labor productivity were infinite, then all goods
> would exist in infinite abundance.



That might apply to most commodities, but does that apply to finite
non-renewables like oil?

If labor productivity is infinite (and therefore labor cost per unit
commodity is zero), are we going to have an infinite supply of oil?
Clearly not because soon enough the non-labor cost of production would
exceed the value of the oil. How do you reconcile this? Maybe you are
assuming perfect substitutability of non-labor inputs with labor?
-raghu.


-- 
"When I die, I'm leaving my body to science fiction." - Steven Wright
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