[OPE] marginal costs

From: Paul Cockshott <wpc@dcs.gla.ac.uk>
Date: Mon Dec 08 2008 - 11:10:23 EST

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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Received on Mon Dec 8 11:15:18 2008

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