I was speaking with a colleague today whose son is in an introductory class in microeconomics at a state institution. The class is traditionally taught with a heavy emphasis upon outcome and not process, absent any real cohesive attempt to integrate the economic way of thinking with a strong dose of algebra, geometry and some calculus. And we wonder why . . .
In any event, the following post seems on point from The Coordination Problem
Austrian Final Exam Question
Steven Horwitz
I'm not giving a final exam in my Austrian course, but if I was....
Consider the following quote from Kirzner and explain what you think it means. Apply it to at least two standard models of market structure. “As soon as we draw the cost and revenue curves facing the firm, no matter what their shape, we have created a theoretical case in which all competitive behavior has by definition been ruled out.” (1973, p. 108).
Do you think Kirzner's argument is correct? Why or why not?
Friday, April 15, 2011
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