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To: Don Lloyd who wrote (315)11/18/2003 12:30:36 AM
From: Wildstar  Read Replies (1) | Respond to of 445
 
Don,

For the purposes of this discussion, the largest revenue price is the price of a consumer good set by a monopolist (simplest case), subject to restrictions. After all, he is the only seller. The marginal buyer and seller are setting the market price of a production factor, in our general current context.

This gets more and more confusing.

1)I can see how the marginal seller of the consumer good is the monopolist seller. After all, he is the *only* seller. However, how do we know that the marginal buyer buys at the max revenue price?

2)I thought we were talking about consumer goods for max revenue price, not factors of production?

Wildstar