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Negative Marginal Cost and Disposal: Implications for the Theory of the Firm

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  • Glustoff, Errol
  • Wickham, Elizabeth

Abstract

Consequences of a falling total variable cost curve due to negative input prices or inferiority are examined. Introducing positive disposal costs leads to the uncommon result that output may increase when disposal of output ceases to be free and sales may fall short of the actual output produced. Copyright 1991 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia

Suggested Citation

  • Glustoff, Errol & Wickham, Elizabeth, 1991. "Negative Marginal Cost and Disposal: Implications for the Theory of the Firm," Australian Economic Papers, Wiley Blackwell, vol. 30(56), pages 164-169, June.
    • Handle: RePEc:bla:ausecp:v:30:y:1991:i:56:p:164-69
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    Cited by:

    1. Andrea Vaona, 2016. "A nonparametric panel data approach to the cyclical dynamics of price-cost margins in the fourth Kondratieff wave," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(2), pages 155-170, August.
    2. Worthington, Andrew C. & Higgs, Helen, 2014. "Economies of scale and scope in Australian urban water utilities," Utilities Policy, Elsevier, vol. 31(C), pages 52-62.
    3. Vaona, Andrea, 2010. "A nonparametric panel data approach to the cyclical dynamics of price-cost margins," Kiel Working Papers 1580, Kiel Institute for the World Economy (IfW Kiel).

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