Re: [OPE] marginal costs

Michael Perelman wrote:
> 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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>
>
I want a citation of somebody showing that this was not the case in the
published literature.
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Received on Mon Dec 8 11:40:06 2008