ERIC Number: EJ670516
Record Type: Journal
Publication Date: 2001
Reference Count: N/A
Infinitesimal Firms and Increasing Cost Industries.
Peck, Richard M.
Journal of Economic Education, v32 n1 p41-52 Win 2001
Presents a rigorous version of the model of an increasing-cost competitive industry. Explains that in this model firms are infinitesimal, which justifies price-taking behavior and a continuous industry supply curve. Shows that the industry supply curve slopes upward because of dispersion in the efficiency of firms. Emphasizes role of marginal firm. (RLH)
Publication Type: Journal Articles; Reports - Descriptive
Education Level: N/A
Authoring Institution: N/A