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Costs private and social costs will appear are equal. It is necessary to notice that
- formulates the theorem of Kouza differently, than I have expressed the same thought in the
To article. There I said that value of manufacture will be
To be maximised. But in it there is no inconsistency. Social costs
Represent the highest value which factors can bring
Manufactures at their alternative use. However manufacturers,
Which are usually interested only in maximisation of own income, not
Pay attention to social costs and start to any
Activity, only if value of that involved factors make,
There will be it, than their private costs (i.e. Size of the income which it is possible
To earn by means of these factors at their best alternative
Use). But if private costs are equal to social costs, means,
Manufacturers will start activity only when value of that
Make the involved factors more than value of that they can give
Costs value of manufacture will be the greatest.
In the economic literature the theorem of Kouza was discussed very in detail, and I not in
Forces to capture all moments mentioned in discussion. Some objections,
However, put forward by rather capable economists and beating directly in the centre
My argument, repeated with such constancy that on them it is impossible not
To respond, as this criticism, from my point of view, mostly
It is unimportant and groundless, or does not concern business. Even those who
Sympathised with my point of view, frequently incorrectly understood my arguments that
I explain the extraordinary power of the approach of Pigu over thinking of the modern
Economists. I can hope only that these notes will help to weaken it
Influence. The rights I or not, they, at least, will clear the nature of mine
II. Whether riches maximisation Will be reached?
MAIN POINT - whether reasonably to assume, like me that at the zero
Riches maximisation. Confirmed, what is it the erroneous assumption, and to it
To objection has given weight that has put forward it, besides all other, Samuelson.
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