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What if the producer does something totally insane, and keeps producing, because someone there likes doing it?
by psyc 10y ago
What if the producer does something totally insane, and keeps producing, because someone there likes doing it?
- savanaly 10y agoI would interpret that economically in the following way: the cost to that particular producer is lower than other producers because their time spent producing is partly leisure if they enjoy it. To the extent that they have a lower relative cost of production than others then it's their comparative advantage to be in that business and they will turn a nice hefty profit (economic profit that includes how much they enjoy their work, not necessarily an accounting profit).