MARGINAL COSTS AND EQUILIBRIUM PRICES IN MICRO-ECONOMY (PREPRINT IBRAE-1999-02)

Preprint IBRAE-99-02

Karkhov A.N. 

The role of marginal parameters is treated by the modern micro-economic theory too widely, that  results in significant  distortion of the qualitative and quantitative characteristics of economic processes. This lack of the theory is caused by use so-called "the decreasing revenue law" and a postulate about inevitable increase of average costs with growth of output. In the given work is shown how to construct the theory of micro-economic, being based on not growing costs. The uniform approach to the mathematical description of evolution of monopoly, duopoly and oligopoly in conditions of the market with the given demand function  is  offered, and  the decisions of classical tasks on monopoly, Cournot’s and Stakelberg’s duopoly determine only some optimized initial conditions   of their  equilibrium evolution. The expressions of the market prices basic and circulating capitals of developing firms (technologies) are received. The models of financing of their development by means of crediting (investment) and balance in the financial market are considered. 

Bibliographical reference

Karkhov A.N. MARGINAL COSTS AND EQUILIBRIUM PRICES IN MICRO-ECONOMY (in Russian). Preprint IBRAE-99-02. Moscow: Nuclear Safety Institute. May 1999. 33 p. — Refs.: 8 items.