Q:What Law of Nature Determines Price and Volume etc.

Don — Mon, 09 Nov 2009 17:44:13 +0000

A: For an Economy, like say the U.S. where we have variables Employed Men, Price,Volume,Wages,Investment,Scale of Operation, Production Process Mean Dimensions of Radius R with Number of space dimensions being used = m, Dollars, A Gross National Product, Specific Products and the change in time of these variables then:

For a change in Production of a Product with time the Behavior of Men is to Minimize their time/Per unit of Volume of the product, i.e. that ratio (dMen/dRadius with time)=0.

Using reduced values, or indexed values of these variables based on a given year for GNP, Price, Volume, etc. and the Fact that Dollars=Price*Volume=Wages*Men, and Volume=Radius^m gives a Slope for the Experienc Curve=(1/m-1)*(1-Exp(-k*t)) wherE k=growth rate constant for the product and t=time (usually years) .

Because “All Men involved minimize their time per unit of space dimension, with time”. Thus this Law of Nature is claimed as Garnett’s Minimization Law

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Inherent in the foregoing is also the fact that Investment=Scale^(1/m).

Experience Curves » fundamental

Q:What Law of Nature Determines Price and Volume etc.