Austrian Economics Overview

The only cartels that have lasted have been government cartels. There is no essential difference between a cartel and an ordinary corporation or partnership. Not even the De Beers cartel is all powerful.

Thou shalt not sell a certain product or service below a certain price, e.g. wheat, cotton, corn, cheese, sugar. This will result in an artificial unsold permanent surplus, as it does in the American farm situation.

Business men must make sure they can cover their costs by incoming revenue. The production function will yield a certain quantity of a product. The firm considers marginal costs and average costs to weigh where along the demand curve production is.

Recorded on 27 July 1975.

Recorded in Vienna, Austria; 25 May 1988.

Interviewed by Judge Andrew Napolitano on the “Freedom Watch” program, 27 January 2010.

Presented by Congressman Ron Paul at “The Failure of the Keynesian State,” the Mises Circle in Houston, sponsored by Jeremy S. Davis.

Presented by Llewellyn H. Rockwell, Jr. at “The Failure of the Keynesian State,” the Mises Circle in Houston, sponsored by Jeremy S.

Price is determined by the equilibrium price and the equilibrium quantity. If your good is not selling, you lower the price. If your goods fly off the shelves you are selling too cheaply and you raise prices.