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It is represented, however, that this widespread opinion is based on

Misunderstanding. Unconditionally, a parity, in what basic and a working capital

Are applied in production, can vary only gradually and slowly, in

Current of the long period of time. But matter is not in it. Us interests not

Parity between existing stocks of the core and a working capital, and that Parity in what firms direct the operational expenditure on updating (or

Replenishment) two kinds of capital assets. And daily experience, and the general

Reasons force to think that this parity will be extremely Changeable in the short-term period.

The erroneous impression forms, possibly, those illustrations of transition from

Less to more capitalist methods of production, which usually

Are used in textbooks at the description of alternative conditions of the long-term

Balance. Known examples "changes in production methods" - about replacement

All machine tools of one type machine tools of other type, replacement of less durable

Short, processes, on the average longer, - put an accent on that The moment which would really be represented unimportant in short-term

The period. To understand, how the same tendency can act with not smaller force

In the short-term period, we should overcome the habit to "the comparative

To statics "from textbooks and to try to think more realistically of the concrete

Decisions, constantly to accept which it is necessary businessmen.

In the taken away frameworks we can give some illustrations. But I hoping,

That they will show, the circle of the possible is how much wide even on very short period


We need to present the businessmen equipped during any given moment Certain stock of the equipment of long use, only small

Which part requires replacement during any short period of time. If conditions

Remained same, as well as were, they would continue the period behind the period

To invest the received depreciation charges in the equipment of the same Sorts. But they will arrive so simply because it is the most profitable Method of use of means available for them, and we should not assume that

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