By Charles K. Rowley

ISBN-10: 0333122151

ISBN-13: 9780333122150

ISBN-10: 1349011134

ISBN-13: 9781349011131

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K. 1970 Tariffs School 1958 (3) Montevideo Tariffs Treaty countries (%) 0·07 0·01 0·05 0·18 max 0·10 max 1·00 max 0·0075 Sources: (1) Economic Theory and Western European Integration (Stanford, 1958). (2) Free Trade, Protection and Customs Unions (Leiden, 1961). (3) Unpublished calculation. Overall source: H. Leibenstein, 'A11ocative Efficiency vs. June 1966) p. 393. Price and cost CP o Output rates MP =monopoly price CP = competitive price FIG. 7. Welfare loss from allocative inefficiency 48 In Fig.

R. A. A. ]. K. 1970 Tariffs School 1958 (3) Montevideo Tariffs Treaty countries (%) 0·07 0·01 0·05 0·18 max 0·10 max 1·00 max 0·0075 Sources: (1) Economic Theory and Western European Integration (Stanford, 1958). (2) Free Trade, Protection and Customs Unions (Leiden, 1961). (3) Unpublished calculation. Overall source: H. Leibenstein, 'A11ocative Efficiency vs. June 1966) p. 393. Price and cost CP o Output rates MP =monopoly price CP = competitive price FIG. 7. Welfare loss from allocative inefficiency 48 In Fig.

Demsetz avoids the public policy dilemma posed by the indivisibility in use of invention by rejecting the notion that economic activity can be partitioned into the act of producing knowledge and the act of disseminating already produced knowledge. Since one of the main functions of paying a positive price is to encourage others to invest the resources required to sustain a continuing flow of production, Demsetz contended that the efficiency with which the existing stock of information is used cannot be judged without examining the effects on production.

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Antitrust and Economic Efficiency by Charles K. Rowley


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