Re: [OPE] marginal costs

My book, Railroading Economics, shows how the refutation was commonplace among the
founders of the American Economic Association. Schumpeter seems to have lifted their
work and promoted as his own in Capitalism, Socialism, and Democracy.

On Mon, Dec 08, 2008 at 04:38:22PM +0000, Paul Cockshott wrote:
> 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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-- 
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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