We review  production function and the hypothesis of equilibrium in the neoclassical framework. We notify that in a soup of sectors in economy  while capital and labor resemble extensive variables, wage and rate of return on capital act as intensive variables. As a result, Baumol and Bowen's statement of equal wages is inevitable from  thermodynamics point of view. We then try to see how aggregation can be performed concerning the extensive variables in a soup of firms. Finally, we provide a toy model to aggregate production and the labor income as extensive quantities in a neoclassical framework.
We review the production function and the hypothesis of equilibrium in the neoclassical framework. We notify that in a soup of sectors in economy , while capital and labor resemble extensive variables, wage and rate of return on capital act as intensive variables. As a result, Baumol and Bowen's statement of equal wages is inevitable from the thermodynamics point of view. We try to see how aggregation can be performed concerning the extensive variables in a soup of firms. We provide a toy model to perform aggregation for production and the labor income as extensive quantities in a neoclassical framework.
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