Prosperity and Depression.pdf

108 Anatysis Of Theories Part Iincident to the conduct of business enterprises creep up whenmanagers are hurried by a press of orders demanding promptdelivery." 1A corresponding process of cost reduction is going on duringthe depression and prepares the ground for a revival.In the passage quoted~ the operation of a numberElements of factors is very luminously described. But,contained in analytically, the various forces making for higherother theories. unit cost, partly in real terms, partly only in termsof money, are very different in nature.That cost ofproduction in terms oflabour rises because inefficientworkers and undesirables must be employed and because antiquatedequipment must be brought into operation when production isexpanded is quite natural. This is. simply a way of expressingthe law of decreasing returns. The supply price rises, and thisce obviously limits the extent to which production expands inresponse to a given rise in demand; and, since the wh