Theoretical Economics Paper
The Short-Run Approach to LRMC Pricing for Multiple Outputs with Nondifferentiable Costs
Anthony Horsley and Andrew J Wrobel
Using convex calculus, we extend the Wong-Viner Theorem to nondifferentiable costs by equating the capital inputs' rental prices to their profit-imputed marginal values. Thus extended, the short-run approach to LRMC pric...Read more...