180 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28 
CHAPTER II 
THE PROCESS OF PRODUCTION IN THE SHORT RUN 
.. A very simple case: production by means of labour alone 
We may begin our analysis by considering the process of 
production at a given point of time or, to be more realistic, 
within a short period of time, defined in such a way that, 
within it, changes in population, productive capacity, technical 
knowledge and consumers’ preferences are negligible. 
The economic system we are considering is closed and con- 
sists of a society of individuals whose purpose 1s to produce 
goods in order to derive enjoyment (or relief from pain) by 
consuming them. Two types of activities are therefore perfor- 
med in the system: a production activity and a consumption 
activity. At the beginning of the period, the production pro- 
cesses are programmed in the best way that is technically 
known and, at the end of the production processes, the com- 
modities are consumed. Technical knowledge is supposed to 
be quite advanced so that each process of production requires 
division of labour and a marked specialisation. Therefore, each 
individual consumes only a very small part of the commodities 
he produces (or contributes to produce); and obtains all the 
others through exchange. Total production (and therefore con- 
sumption) is well diversified: the system produces many types 
of commodities, according to the preferences of its individual 
members, or consumers. 
10] Pasinetti - pag. 10