Further evidence of positively sloping marginal revenue.
A commentary on Steven R. Beckman and W. James Smith's “Positively Sloping Marginal Revenue, CES Utility and Subsistence Requirements,” which appeared in Southern Economic Journal, October 1993, pp. 297-303. In contrast to Beckman and Smith's derivation of the marginal revenue function from the inv...
| Published in: | Southern Economic Journal Vol. 62; pp. 481 - 486 |
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| Main Authors: | , |
| Format: | Article |
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Southern Economic Association
October 1995
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| Subjects: | |
| Online Access: | View this record in EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=512680498&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 512680498 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00384038 SEJ jtl: Southern Economic Journal issn: 00384038 maglogo: N pubinfo: dt: October 1995 vid: 62 pid: 1482 pub: Southern Economic Association artinfo: ui: 512680498 10.2307/1060699 ppf: 481 ppct: 5 formats: tig: atl: Further evidence of positively sloping marginal revenue. aug: au: Primont, Diane F. Primont, Daniel su: Revenue Utility theory sug: subj: Revenue Utility theory keyword: Marginal revenue ab: A commentary on Steven R. Beckman and W. James Smith's “Positively Sloping Marginal Revenue, CES Utility and Subsistence Requirements,” which appeared in Southern Economic Journal, October 1993, pp. 297-303. In contrast to Beckman and Smith's derivation of the marginal revenue function from the inverse demand function, the properties of the marginal revenue function that correspond to the Marshallian demand function are examined. It is assumed that goods and price vectors are nonnegative and that each of the goods has a nonnegative minimum subsistence requirement. It is shown that the marginal revenue function is non-monotonic: Marginal revenue is at first negative and then increases to a positive value; once positive, marginal revenue rises further, and the marginal revenue function is sloped positively; and eventually, marginal revenue starts to decline, and the marginal revenue function becomes negatively sloped. This shows that Beckman and Smith's results based on the inverse demand function are also valid when marginal revenue is derived from the Marshallian demand function. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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