One question Jurriaan: > Further Marx doesn't discuss how, in inflationary times or under > monopolistic conditions, businesses can simply raise their output prices to > offset declining returns. I don't follow this; if you don't mind can you explain it to me. Surely, monopolistic firms *always* operate on the elastic part of the demand curve - therefore, total revenue could not be increased by raising prices... The opposite holds true. It is impossible for the monopolistic firm to set *any* old price, at least if we assume they are profit maximisers. Am I wrong about this? Nicky ---------------------------------- Nicola Mostyn (Taylor) Faculty of Economics Murdoch University Australia Telephone: 61-8-9385 1130
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