Infinitesimal Firms and Increasing Cost Industries.

Peck, Richard M.

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Peer reviewed

ERIC Number: EJ670516

Record Type: Journal

Publication Date: 2001

Pages: N/A

Abstractor: N/A

ISBN: N/A

ISSN: ISSN-0022-0485

EISSN: 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)

Descriptors: Economic Research, Economics Education, Higher Education, Macroeconomics, Models, Supply and Demand, Textbook Content, Textbooks, Undergraduate Students, Undergraduate Study

Publication Type: Journal Articles; Reports - Descriptive

Education Level: N/A

Audience: N/A

Language: English

Sponsor: N/A

Authoring Institution: N/A

Grant or Contract Numbers: N/A