ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Babal MukherjiSubscribe to Babal Mukherji

Simple Analytics of Public Sector Pricing in a Capacity Constrained Mixed Economy

This exercise on public sector pricing focuses on a mixed economy which faces explicit capacity constraints in one or more sectors. Of particular interest among the results is that the decisions on either pricing the public sector product or the mode of financing losses do not have simple consequences for the price of the private sector product or the measure of profitability in either sector.
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