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Abstract for:

The Short-Run Approach to LRMC Pricing for Multiple Outputs with Nondifferentiable Costs

Anthony  Horsley,  Andrew J  Wrobel,  June 2000
Paper No' TE/2000/393: | Full paper (pdf)
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Keywords: Wong-Viner theorem; multiple outputs; peak-load pricing; energy storage

JEL Classification:

Is hard copy/paper copy available? YES - Paper Copy Still In Print.
This Paper is published under the following series: Theoretical Economics
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Using convex calculus, we extend the Wong-Viner Theorem to nondifferentiable costs by equating the capital inputs' rental prices to their profit-imputed marginal values. Thus extended, the short-run approach to LRMC pricing is applied to peak-load pricing with storage.