Average Cost and Marginal Cost Pricing in Marshall: Textual Analysis and Interpretation

zamparelli, luca (2007): Average Cost and Marginal Cost Pricing in Marshall: Textual Analysis and Interpretation.

Abstract

This paper proposes a textual analysis of Marshall’s theory of firm pricing behavior under competitive conditions. It considers to what extent average cost and marginal cost pricing rules characterize Marshall’s competitive partial equilibrium, and it shows that the two rules differ for origins and can be reconciled only with great difficulty in a general equilibrium framework.

• Item Type: MPRA Paper
• Language: English
• Keywords: Marshall, classical competition, perfect competition, marginal and average cost
• Subjects: D - Microeconomics > D4 - Market Structure, Pricing, and Design > D46 - Value Theory; B - History of Economic Thought, Methodology, and Heterodox Approaches > B1 - History of Economic Thought through 1925 > B12 - Classical (includes Adam Smith); D - Microeconomics > D4 - Market Structure, Pricing, and Design > D41 - Perfect Competition; B - History of Economic Thought, Methodology, and Heterodox Approaches > B1 - History of Economic Thought through 1925 > B13 - Neoclassical through 1925 (Austrian, Marshallian, Walrasian, Stockholm School)