Paul, I agree with you. One of the symptoms of increasing returns is a glutting of the market, which manifests itself in the way you suggested. Similarly, decreasing returns, especially in the face of increasing demand, shows up as great profits for those in the business.
On Sat, Apr 09, 2005 at 11:01:57PM -0700, paul phillips wrote: > Yes but what do you mean by "dramatic increasing returns to > manufacturing and decreasing returns to resources". In Canada > manufacturing is in difficulty while the resource industries are reaping > the highest prices in decades. > -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu
