Keynes notes that the whole concept of marginal cost as the main cause of price determination is grossly exaggerated:“Indeed, it is rare for anyone but an economist to suppose that price is predominantly governed by marginal cost. Most business men are surprised by the suggestion that it is a close calculation of short-period marginal cost or of marginal revenue which should dominate their price policies. They maintain that such a policy would rapidly land in bankruptcy anyone who practised it.
Social Democracy For The 21St Century: A Post Keynesian Perspective
Keynes on Marginal Cost and Price
Lord Keynes
Keynes on Marginal Cost and Price
Lord Keynes
