Marginal Product is not Demand

5 Pages Posted: 14 Jul 2014

See all articles by Hak Choi

Hak Choi

Chienkuo Technology University - Department of International Business; Chung-Hua Institution for Economic Research

Date Written: July 12, 2014

Abstract

This paper proves that marginal product is not demand. Its use as one leads to inconsistent production. Marginal product is merely a condition for optimization, but itself is not demand. Only the simultaneous solution offers the consistent demand function, consisting solely of exogenous variables. This paper also distinguishes the production manner between communist and free entrepreneurs.

Keywords: Demand, Marginal Product

JEL Classification: D24, O41

Suggested Citation

Choi, Hak, Marginal Product is not Demand (July 12, 2014). Available at SSRN: https://ssrn.com/abstract=2465524 or http://dx.doi.org/10.2139/ssrn.2465524

Hak Choi (Contact Author)

Chienkuo Technology University - Department of International Business ( email )

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Changhua City, 500
Taiwan
+886 91 901-4618 (Phone)

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Chung-Hua Institution for Economic Research ( email )

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Taipei
Taiwan

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