Obviously, higher rates of returns on exported capital and
cheaper prices of inputs will cut production cost and will
generate more profits; consequently, the economic boom
continues.
Mitchell (1941) and Mouhammed (2008) provide other
sources reducing the cost of production during the early
phase of the economic expansion such as lower interest
rates by the banking system and lower taxes by the
government. Other sources of cost reduction come from
lower administrative cost and rents. If insurance premium
and health-care cost are low, then capitalists and people
will be able to cut their costs as well.
On the revenue side, Veblen (1923: 287) argues that
the fundamental objective of business enterprises is “to
increase their sales without lowering prices”. Sales can
be augmented by several methods. Salesmanship
(marketing) which consists of advertising and personal
bargaining according to Veblen (1923: 311) is used to
increase sales and revenues. In fact, this method
emphasizes the importance of the business field of
marketing.