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Pricing Behaviour

In: The Theory of the Firm

Author

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  • P. J. Curwen

Abstract

Traditional models of the firm all incorporate the objective of profit maximisation. Furthermore, these models stipulate that the price-output combination which satisfies this objective is identified by recourse to the rule that marginal cost should be equated with marginal revenue. Hence the traditional models of the firm can be seen to require accurate data on both cost and demand conditions for the purposes of price determination.

Suggested Citation

  • P. J. Curwen, 1976. "Pricing Behaviour," Palgrave Macmillan Books, in: The Theory of the Firm, chapter 0, pages 91-98, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-15645-0_13
    DOI: 10.1007/978-1-349-15645-0_13
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