Talk:Production set

I think the word input is misused here... Is a production set not the set of all possible output bundles that a firm can produce given its resources ?

Etherwill (talk) 13:12, 11 November 2009 (UTC)

Yeah, I corrected it.radek (talk) 01:12, 15 April 2010 (UTC)

2020 additions

I added material in autumn 2020 to fill a rainy Sunday. I thought it wouldn’t amount to more than rewording a few paras in Mas Colell et al. But when you look below the surface their account turns out to be problematic. It defines the production vector (p128) in turns of outputs (which by their nature are flows – an item is produced in a certain period of time and then put on sale) and adds that negative outputs are inputs, which tells us how to deal with flow inputs. This order of presentation hides from the reader’s eye the fact that some inputs are stocks.

It then defines profit as the value of net output (p135), but you can’t identify profit until you know how to deal with stock inputs. Does interest on the flour mill need to be subtracted?– entrepreneurial premium for the owner? It is hard to consider their definition of profit to be adequate. Colin.champion (talk) 09:10, 10 November 2020 (UTC) (edited Colin.champion (talk) 13:32, 11 November 2020 (UTC))