Lower order goods give value to higher order goods used to produce the first ones. Value goes from lower to higher order goods.
The process of production goes all the way back. Higher order goods serve to produce lower order goods. Production goes from higher to lower order goods.
The role of the entrepreneur is guessing a production process which back-matches a process of deriving value. This and only this is what the role of the entrepreneur is all about.
Friday, April 17, 2009
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