The classical economists of the 18th century claimed that in the long-run, the price of a product in a competitive marke
Posted: Fri Jul 01, 2022 8:19 am
The classical economists of the 18th centuryclaimed that in the long-run, the price of a product in acompetitive market is determined by firms’ constant average cost ofproduction. By contrast, the neoclassical economists of the late19th century claimed that in the very short-run,the price of a product is determined by consumers’ marginalutility.
Does Alfred Marshall’s model of a competitive market resolvethis dispute?
Does Alfred Marshall’s model of a competitive market resolvethis dispute?