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Published in:
1976 | OriginalPaper | Chapter
Pricing Behaviour
Author : P. J. Curwen
Published in: The Theory of the Firm
Publisher: Palgrave Macmillan UK
Included in: Professional Book Archive
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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.