Firms don't maximus profit by aquiting marginal cost and marginal revenue, which is the bolitany they get towardnfirs in mikor economics. Because if they do, the price will be below average cost. The'll lose money. So what firms actually do, rather than choosing a profit maximizing output level, they try to flog as many units as they can. In a competitive industry, the more units you sell, the more profit youl make. Your average cost of falling as your output rises. And this is an explanation for large firms evolving and for the competitive behaviour of firms,. where they always try to sell as many unitsas they can.
On this episode, we meet with Economist, Author, and Research Fellow at the Institute for Strategy, Resilience, and Security at University College in London, Steve Keen.
Keen discusses how mainstream economics misses the centrality of energy to our economy and to our futures, the naive treatment to the risks of money and debt creation, and the disconnect economic theory has to climate change risks.
About Steve Keen:
Steve Keen is an economist, author of Debunking Economics and The New Economics: A Manifesto, a Research Fellow at the Institute for Strategy, Resilience, and Security at University College in London.
For Show Notes and Transcript visit: https://www.thegreatsimplification.com/episode/30-steve-keen