Reply To: Cartels and profits


As you suggested, there’s no apriori way to know if producing and selling a less durable product generates more net income than producing and selling a more durable product. What we do know apriori is that entrepreneurs economize for society at large by selecting the alternative that renders the most net income. In producing any non-perishable consumer good, e.g., cars, computers, refrigerators, lawn mowers, houses, light bulbs, etc. entrepreneurs have a choice between producing more and less durable alternatives.

Take a look at F.A. Hayek’s rebuttal of Galbraith: