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The text discusses a new approach to understanding artistic behavior by viewing artists as small business enterprises rather than workers in the labor market. This perspective allows for a more nuanced analysis of creative output and innovation incentives. The author proposes a production function for individual artists that combines conventional inputs with human capital characteristics, including education, training, experience, and artistic creativity. The function includes two types of output: creative artistic output and commercial artistic output. Artists often supplement their income through teaching or other arts-related activities, which require less creativity but involve the use of their artistic skills. This suggests that there may be two distinct production functions for individual artists.
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