Question
PLEASE USE AN AUSTRIAN PERSPECTIVE On what does the value of capital goods (higher order goods) depend? Can innovation change the value of capital goods
PLEASE USE AN AUSTRIAN PERSPECTIVE
On what does the value of capital goods (higher order goods) depend? Can innovation change the value of capital goods that already exist and are part of the production structure? Why is it not valid to use the present price of capital goods to quantify the value of capital? In what sense and under what conditions can we say that the present price of a capital good is equal to its value? What role do expectations play in these conditions? If these conditions are met, what would be the relationship between the price and the cost of capital goods? Remember that cost in economics in general (and in Austrian economics in particular) always refers to opportunity cost.
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