Jim: > Sabri Oncu <sabri.oncu at gmail.com> wrote: >> Marginal cost pricing assumes that price is >> independent of quantity, so profit is > >at when price is equal to the marginal cost. > >no, it's where marginal revenue equals marginal cost.
Comm'on Jim, In marginal cost pricing marginal revenue is equal to price because revenue is equal to price times quantity and price is independent of quantity. This is what the neoclassicals mean by perfect competition, right? All firms are price takers in such markets so price must be independent of quantity. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
