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- Title
MONOPOLY UNDER GENERAL EQUILIBRIUM: COMMENT.
- Authors
Bishop, Robert L.
- Abstract
This article evaluates the error that lies in the assumption that production will take place at some point on the efficiency locus of the Edgeworth-Bowley box. There are several reasons why it is not in the monopolist's self-interest to produce on the efficiency locus. The demand for the monopolist's product is normally interdependent with the costs in a manner that compromises the relevance of cost minimization. The relationships between the efficiency and cost-minimizing loci depend on the relative values in the cost-minimizing equation.
- Subjects
ECONOMIC equilibrium; SUPPLY &; demand; SUPPLY-side economics; ECONOMIC demand; PRODUCTION (Economic theory); MICROECONOMICS; BALANCE of trade
- Publication
Quarterly Journal of Economics, 1966, Vol 80, Issue 4, p652
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1882921