LET'S RID OURSELVES OF THE REPRESENTATIVE FIRM MODEL

Abstract

The representative firm model is used to demonstrate that competitive markets yield least‐cost production in the long run. This model is deficient in two respects: The demonstration's validity is suspect and it fails to show that least‐cost production occurs in the short run as well.

Citation

Wilson Mixon, J. (1991), "LET'S RID OURSELVES OF THE REPRESENTATIVE FIRM MODEL", Studies in Economics and Finance, Vol. 14 No. 1, pp. 3-9. https://doi.org/10.1108/eb028696