The Disproof of Neoclassical Theory by Means of Its Own Means

10 Pages Posted: 18 Dec 2020

See all articles by Dimitrios Nomidis

Dimitrios Nomidis

Athens University of Economics and Business; National Technical University of Athens

Date Written: December 9, 2020

Abstract

My research so far, which reveals fundamental mistakes of the conventional (neoclassical) economic theory, is based mainly on the (wrong) perception of this theory for the price taking and the horizontal demand curve for the firm, using instead the correct individual demand curve for the firm, which is sloping and equal to the total demand divided by the number of firms for each price. Despite the great readability and vivid academic interest that my relevant papers have caused, I feel some difficulties regarding the acceptance of the revised theory and perhaps even its understanding, due to physiological addiction and adherence to traditional theory and methodology. This article, however, demonstrates these mistakes of conventional theory by using the methodology of the conventional theory itself, without getting involved in the controversial issue of the horizontal or sloping demand curve for the firm.

Keywords: mistakes in equilibrium at market level, aggregate industry profit maximization, number of firms in perfect competition, supply curve, monopolistic nature of perfect competition, social welfare

JEL Classification: B12, B13, B21, D21, D41, D42, D43, D46, D50, D60, E10, E13, E30

Suggested Citation

Nomidis, Dimitrios, The Disproof of Neoclassical Theory by Means of Its Own Means (December 9, 2020). Available at SSRN: https://ssrn.com/abstract=3745905 or http://dx.doi.org/10.2139/ssrn.3745905

Dimitrios Nomidis (Contact Author)

Athens University of Economics and Business ( email )

76 Patission Street
Athens, 104 34
Greece

National Technical University of Athens ( email )

Zografou Campus
Athens
Greece

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
126
Abstract Views
597
rank
284,672
PlumX Metrics