Abstract
Neoclassical economics has always tried to portray wages and profits as mere technical variables. At an aggregate level, this is accomplished by connecting labour and capital to output through a ‘well-behaved’ aggregate production function, with the marginal products of labour and capital equal to the wage rate and profit rate, respectively. Thus in competitive equilibrium each social class is pictured as receiving the equivalent of the marginal product of the factor(s) it owns (Shaikh, 1980).
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Bibliography
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© 1990 Palgrave Macmillan, a division of Macmillan Publishers Limited
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Shaikh, A. (1990). Humbug production function. In: Eatwell, J., Milgate, M., Newman, P. (eds) Capital Theory. The New Palgrave. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-20861-6_15
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DOI: https://doi.org/10.1007/978-1-349-20861-6_15
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