Re: [OPE] marginal costs

That would probably relate to my work. What do you want to know?

On Mon, Dec 08, 2008 at 04:10:23PM +0000, Paul Cockshott wrote:
> I seem to recall that a couple of years back there was discussion here
> refuting the following neo-classical position:
>
> "A competitive firm equates its marginal cost to the market price of its
> product. The equality of marginal cost and price is a fundamental
> efficiency condition for the allocation of resources. When the condition
> holds, the purchasers of the product equate their marginal rates of
> substitution to the corresponding marginal rates of transformation. By
> contrast, under monopoly or oligopoly, the allocation of output will be
> inefficient because price will exceed marginal cost."
>
> Can anyone remember it more precisely?
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-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929
Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu
michaelperelman.wordpress.com
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