Thursday, August 11, 2011

How does marginal cost pricing depleting natural resources?

I suppose you could argue that marginal cost pricing maximizes production and, therefore, the quantity of resources used. However, if you do, that logic would suggest you argue that prices should be set way above marginal cost so as to minimize production and resources. That would be rather dumb. We can minimize the use of natural resources by going back to 18th century living. Up for that?

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