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Utility maximization is a proposition that can neither be confirmed nor refuted. For one thing, "utility" does not even exist as an entity; it's a mere conceptual construct. For another, "maximization" as a motivation is inherently unobservable. Even behavioral economists, who are adept at finding so-called empirical "anomalies" --- behaviors that apparently ...


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When comparing industries it is almost intuitive that a relative productivity increase causes a relative price decrease in the absence of anything else happening. The reason it is intuitive is that all the competitors within the same industry probably benefit from the same productivity increase so together you can all raise prices slowly or not at all or ...


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