Paper.Component = function(){}; // useless unless I can solve problem mentioned below?
Paper.Component.prototype = {
    isInBounds: function(x, y){
        // ...
    },
    setPosition: function(x, y){
        // ...
    },
    setSize: function(w, h){
        // ...
    }
};

Paper.Button = function(x, y, w, h, text){
    // ...
}
Paper.Button.prototype = Object.create(Paper.Component.prototype);

Paper.Component = function(x,y,w,h){
    this.setPosition( x, y );
    this.setSize( w, h );
};
Paper.Component.prototype.isInBounds  = function(x, y){};
Paper.Component.prototype.setPosition = function(x, y){};
Paper.Component.prototype.setSize     = function(w, h){};

Paper.Button = function(x, y, w, h, text){
    Paper.Component.apply( this, arguments );
}
Paper.Button.prototype = Object.create(Paper.Component.prototype);
Paper.Button.prototype.constructor = Paper.Button;