ECON 232 Study Guide - Final Guide: Perfect Competition
Document Summary
As for the traditional view, railways are necessary and sufficient for meg, trains were seen as the only thing needed to transition to meg. People used to think that where trains are created, meg is sure to follow. However, it was not the case, but people thought it was. From the revisionist view, people think that close substitutes exist and there may have been other technologies involved. >exponentially larger, orders of magnitudes in savings of time and costs of info, products, and people transfers. Source of technology(needed first mover to make progress->britain was one to get everyone forward) Import l,k, tech: us and canada (lesser extent germany and france) Us railway milage and income per capita rising at same rate ->almost parallel. For railway: increase speed delivery,decrease uncertainty, decrease damage(water wrack stuff) Inventory and storage costs decrease, low/0 return investment of storage. Cause for water, if you can"t move by water, you have to store them.
