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Pastimes : Austrian Economics, a lens on everyday reality

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To: Don Lloyd who wrote (309)	11/18/2003 12:09:18 AM
From: Wildstar	Read Replies (1) of 445

Don, The price that a rational firm sets at the PTOS (point and time of sale, as distinguished from a price that is projected during production planning) tends to be that price which is expected to produce the largest total revenue for the firm given the demand function of price that it is estimated to face. Maybe I am missing something, but is the largest revenue price the same as the price set by the marginal seller and marginal buyer (i.e., the market price)? Wildstar

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