Contestable Markets and the Theory of Industry StructureThis text presents an integrative theory of what determines prices and industrial structure in contestable markets. The exposition extends theory and technique and suggests some unique perspectives from which to view regulatory and deregulatory policy. |
Contents
3A Ray Average Cost | 48 |
3D Ray Average Cost Returns to Scale and Market Structure | 57 |
Cost Concepts Applicable | 65 |
Copyright | |
48 other sections not shown
Other editions - View all
Common terms and phrases
AC curve analysis assumption average cost curve average incremental cost Baumol behavior capital Chapter competitive equilibrium concept construction cost complementarities cost function cost surface cost-minimizing cross subsidy definition demand functions discussion economies of scope efficient entry barriers entry costs equal example exist feasible Figure firm's firms producing fixed costs hyperplane implies increase incumbent firms industry configuration industry cost industry output industry structure industry's input prices integer intertemporal investment locus marginal cost market demand minimization minimum monopolist multiproduct firm natural monopoly number of firms oligopoly optimal output vector perfect competition perfectly contestable markets period potential entrants price vector product set product-specific profitable entry quantities Ramsey optimum Ramsey prices Ramsey-optimal ray average cost relevant requires result returns to scale revenues satisfy scale economies single-product subadditivity sufficient sunk costs sustainable configuration sustainable prices tion total cost trans-ray convexity translog unsustainability Willig y₁ yields zero