The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Socially Necessary Technique

  • John Eatwell
Reference work entry


The typical representation of the problem of choice of technique involves the selection of a desired combination of production methods from a ‘book of blue-prints’ which contains the set of all available methods. In a competitive economy the cost-minimizing combination of techniques is chosen, and it is this ‘efficient’ set of techniques which is relevant to the analysis of price determination.

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  1. Marx, K. 1867. Capital, vol. I. Harmondsworth: Penguin Books, 1976.Google Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • John Eatwell
    • 1
  1. 1.