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Fortunately, we get asymmetric security through laws and criminal punishment rather than machine gun bunkers. Also, MR=MC doesn’t imply that wealth is never cr
by jotakami 7y ago
Fortunately, we get asymmetric security through laws and criminal punishment rather than machine gun bunkers.
Also, MR=MC doesn’t imply that wealth is never created, it just means that it can’t be created purely through exchanging commodities.
- nootropicat 7y agoNothing special about commodity exchange. The difference between marginal revenue and marginal cost is marginal wealth creation (destruction if negative). A world in which MR=MC is in a global maximum and no improvement is possible - any state changes imposed externally can either lead to the same score ('wealth') or make it worse. In other words, he first assumes that no improvement is possible, and then indeed manages to show that, according to the assumptions, no improvement is possible.