Under perfect competition,marginal pricing results in short-term efficiency and the subsequent right short-term price signals.However,the main reason for the adoption of marginal pricing is not the above,but investmen...Under perfect competition,marginal pricing results in short-term efficiency and the subsequent right short-term price signals.However,the main reason for the adoption of marginal pricing is not the above,but investment cost recovery.That is,the fact that the profits obtained by infra-marginal technologies(technologies whose production cost is below the marginal price)allow them just to recover their investment costs.On the other hand,if the perfect competition assumption is removed,investment over-recovery or under-recovery generally occurs for infra-marginal technologies.展开更多
文摘Under perfect competition,marginal pricing results in short-term efficiency and the subsequent right short-term price signals.However,the main reason for the adoption of marginal pricing is not the above,but investment cost recovery.That is,the fact that the profits obtained by infra-marginal technologies(technologies whose production cost is below the marginal price)allow them just to recover their investment costs.On the other hand,if the perfect competition assumption is removed,investment over-recovery or under-recovery generally occurs for infra-marginal technologies.
