Negative Marginal Cost and Disposal: Implications for the Theory of the Firm

Errol Glustoff and Elizabeth Wickham

Australian Economic Papers, 1991, vol. 30, issue 56, 164-69

Abstract: Consequences of a falling total variable cost curve due to negative input prices or inferiority are examined. Introducing positive disposal costs leads to the uncommon result that output may increase when disposal of output ceases to be free and sales may fall short of the actual output produced. Copyright 1991 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia

Date: 1991
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