Re: [OPE] marginal costs

From: Michael Perelman <>
Date: Mon Dec 08 2008 - 11:24:44 EST

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?
> _______________________________________________
> ope mailing list

Michael Perelman
Economics Department
California State University
Chico, CA 95929
Tel. 530-898-5321
E-Mail michael at
ope mailing list
Received on Mon Dec 8 11:26:25 2008

This archive was generated by hypermail 2.1.8 : Wed Dec 31 2008 - 00:00:05 EST