Skip to main content
Article thumbnail
Location of Repository

The short-run approach to LRMC pricing for multiple outputs with nondifferentiable costs

By Anthony Horsley and Andrew J. Wrobel

Abstract

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 pricing is applied to peak-load pricing with storage

Topics: HB Economic Theory
Publisher: Suntory and Toyota International Centres for Economics and Related Disciplines, London School of Economics and Political Science
Year: 2000
OAI identifier: oai:eprints.lse.ac.uk:19338
Provided by: LSE Research Online

Suggested articles


To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.