Monopsony

Joan Robinson

Chapter Chapter 18 in The Economics of Imperfect Competition, 1969, pp 218-228 from Palgrave Macmillan

Abstract: Abstract THE principle underlying the analysis of the decisions of a buyer as to how much of a commodity to buy is that he will equate marginal utility to marginal cost. As we have seen, this statement is no more than a tautology. If the supply of the commodity to him is perfectly elastic he will equate marginal utility to price. This will occur, first, if he is one of a large number of buyers, so that a change in his purchases has a negligible effect upon the total output of the commodity, and consequently a negligible effect upon its price; or, second, if the commodity is sold under conditions of constant supply price, so that even if a change in his purchases produces a significant change in output it causes no change in price.

Keywords: Marginal Cost; Marginal Utility; Demand Curve; Average Cost; Price Discrimination (search for similar items in EconPapers)
Date: 1969
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-15320-6_19

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349153206

DOI: 10.1007/978-1-349-15320-6_19

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().