Public Finance, 4th Edition

Chapter 9: The Theory of Decreasing Cost Production

1. Decreasing Cost in General Equilibrium Analysis 
   1. The Pareto Optimal Conditions 
   2. Decreasing Cost and Competitive Markets 
   3. The Optimal Pricing Rule 
   4. The Optimal Investment Rules 
   5. The Easy Case 
   6. The Hard Case 
   7. The Sufficient Condition: The Easy Case 
   8. Breakeven Production 
      1. The Price–Consumption Locus 
   9. The Necessary Condition: The Hard Case 
   10. The Necessary Condition and the Compensated Demand Curve 
   11. Marshallian Consumer’s Surplus and Hicks’ Compensating Variation 
       1. Jorgenson-Slesnick Expenditure Shaves 
       2. Roy’s Identity 
       3. Marshallian Consumer Surplus 
       4. Roy’s Identity Again 
   12. Decreasing Cost Services and Public Goods 
2. Reflections on U.S. Policy Regarding ...