The neo-classical approach has focused attention on equilibrium and associated welfare propositions rather than the processes by which decisions are made and their consequences reached. Certain curious results flow from this. Economics, which may be said to have emphasized the significant role of the entrepreneur and entrepreneurship, has nevertheless eliminated both. Their disappearance from the model follows from the assumptions made about knowledge: in the framework in which the ‘firm’ knows all future costs and prices for a given product made by given inputs, the idea of decision-making has no place. Production occurs onlyin response to fully-known consumer wants so that the creation andexploitation of market opportunities is unnecessary. The entrepreneur as an innovative, risk-taking person, cannot be fitted into such a framework.28