Production and the Market Process

IS_Econ_PMP — with Robert P. Murphy

Cost: $69   Length: 8 Lectures
Format: Independent Study
Status: Open for enrollment
Program: Man, Economy, and State

About the Course

This course is a continuation of Professor Murphy’s course Praxeology Through Price Theory, which covers chapters one through four of Murray N. Rothbard’s Man, Economy, and State. In this course, Professor Murphy guides students through chapters five through nine, exploring Rothbard’s delineation of the structure of production, interest rates, the pricing of factors of production, the entrepreneur’s roll in a market economy, and productive incomes. Individuals seeking to deepen and broaden their understanding of economic science in the Rothbardian tradition will find the course material a valuable asset and Professor Murphy’s guidance thorough and illuminating.

For more courses in the Man, Economy, and State series, click here.

Chapters of Man, Economy, and State covered in this course include:

Chatper 5- Production: The Structure
(study guide in text and PDF)

1. Some Fundamental Principles of Action (p. 319)
2. The Evenly Rotating Economy (p. 320)
3. The Structure of Production: A World of Specific Factors (p. 329)
4. Joint Ownership of the Product by the Owners of the Factors (p. 333)
5. Cost (p. 340)
6. Ownership of the Product by Capitalists: Amalgamated Stages (p. 345)
7. Present and Future Goods: The Pure Rate of Interest (p. 348)
8. Money Costs, Prices, and Alfred Marshall (p. 353)
9. Pricing and the Theory of Bargaining (p. 362)

Chatper 6- Production: The Rate of Interest and its Determination
(study guide in text and PDF)

1. Many Stages: The Pure Rate of Interest (p. 367)
2. The Determination of the Pure Rate of Interest:
The Time Market (p. 375)
3. Time Preference and Individual Value Scales (p. 379)
4. The Time Market and the Production Structure (p. 390)
5. Time Preference, Capitalists, and Individual Money Stock (p. 410)
6. The Post-Income Demanders (p. 416)
7. The Myth of the Importance of the Producers’ Loan Market (p. 420)
8. The Joint-Stock Company (p. 426)
9. Joint-Stock Companies and the Producers’ Loan Market (p. 435)
10. Forces Affecting Time Preferences (p. 443)
11. The Time Structure of Interest Rates (p. 445)
Appendix: Schumpeter and the Zero Rate of Interest (p. 450)

Chapter 7- Production: General Pricing of the Factors
(study guide in text and PDF)

1. Imputation of the Discounted Marginal Value Product (p. 453)
2. Determination of the Discounted Marginal Value Product (p. 465)
A. Discounting (p. 465)
B. The Marginal Physical Product (p. 466)
(1) The Law of Returns (p. 468)
(2) Marginal Physical Product and Average Physical Product (p. 468)
C. Marginal Value Product (p. 475)
3. The Source of Factor Incomes (p. 478)
4. Land and Capital Goods (p. 479)
5. Capitalization and Rent (p. 488)
6. The Depletion of Natural Resources (p. 496)
Appendix A: Marginal Physical and Marginal Value Product (p. 500)
Appendix B: Professor Rolph and the Marginal Productivity Theory (p. 504)

Chapter 8- Production: Entrepreneurship and Change
(study guide in text and PDF)

1. Entrepreneurial Profit and Loss (p. 509)
2. The Effect of Net Investment (p. 517)
3. Capital Values and Aggregate Profits in a Changing Economy (p. 527)
4. Capital Accumulation and the Length of the
Structure of Production (p. 537)
5. The Adoption of a New Technique (p. 544)
A.The Entrepreneur and Innovation (p. 546)
6. The Beneficiaries of Saving-Investment (p. 547)
7. The Progressing Economy and the Pure Rate of Interest (p. 549)
8. The Entrepreneurial Component in the Market Interest Rate (p. 550)
9. Risk, Uncertainty, and Insurance (p. 552)

Chatper 9- Production: Particular Factor Prices and Productive Income
(study guide in PDF)

1. Introduction (p. 557)
2. Land, Labor, and Rent (p. 557)
A. Rent (p. 557)
B. The Nature of Labor (p. 564)
C. Supply of Land (p. 566)
D. Supply of Labor (p. 572)
E. Productivity and Marginal Productivity (p. 578)
F. A Note on Overt and Total Wage Rates (p. 580)
G. The “Problem” of Unemployment (p. 581)
3. Entrepreneurship and Income (p. 588)
A. Costs to the Firm (p. 588)
B. Business Income (p. 601)
C. Personal Consumer Service (p. 605)
D. Market Calculation and Implicit Earnings (p. 606)
E. Vertical Integration and the Size of the Firm (p. 609)
4. The Economics of Location and Spatial Relations (p. 617)
5. A Note on the Fallacy of “Distribution” (p. 622)
6. A Summary of the Market (p. 624)


All readings for this course are free, available online, and provided to students in a fully-hyperlinked syllabus.

Independent Study

Independent study courses are courses that were presented live in the past. These courses are now offered at a discount to anyone who wants to study independently. All courses include lecture recordings, slides, a complete hyper-linked syllabus, automatically-graded quizzes, and a discussion forum. Professors are not available for academic support for these independent study courses.

Sample Certificate of Participation

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