 Monopoly, Competition and Variability of Market PricesM. L. Burstein and Walter Oi Chapter 15 in Studies in Banking Theory, Financial History and Vertical Control, 1988, pp 249-255 from Palgrave Macmillan Abstract: Abstract Our text for exegesis is the following: The first impact of this policy [tight money] is the higher interest rate. Plainly the impact of this will be very different on a firm that has control over its prices and hence can pass along this higher cost as compared with the firms whose prices are given and which, accordingly, must bear the cost itself. The point need not be labored. The US Steel Corporation justified it price increase of two weeks ago by the contention that its cost had risen. In doing so it not conceded its ability to pass on higher costs, including interest charges, to the consumer but based its policy on the need to do so. But no such opportunity is open to the farmer or to the smaller businessman. They cannot raise their prices, for they are market-determined. They shoulder the costs of this policy. J. K. Galbraith, in Administered Prices, Hearings before the Subcommittee on Anti-trust and Monopoly of the Committee on Judiciary, U.S. Senate (1957, p. 41). Keywords: Constant Elasticity; Demand Curve; Cost Curve; Marginal Revenue; Price Theory (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-09978-8_15 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-09978-8_15 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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