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For the separate consumer the system of the prices represents conditions, on which
It can receive the different blessings and services. According to what principles
The prices should be defined? The first: for each separate consumer the price
Any factor should be identical without dependence from its form
Uses, differently consumers not can rationally, on the basis of the prices, choose
Preferable way of use of this or that factor. The second: the price
The factor it should be identical to all consumers, differently one will receive
For the same money more than another. If the optimality is reached in
Income and riches distribution, purpose to different people of the different prices for one and
The same factor will lead to frustration of this optimum distribution.
So obvious conclusion follows from the second principle not that the prices should
To be established so that each factor could get to the one who is ready more
To pay. Differently, the price should equalise a supply and demand and in the same
Time to be identical to all consumers and for all kinds of use
Economics of Control, p. 45 - 50, Compare also: Lerner. It assumes that
The payment for a product should equal values of the factors participating it
Manufacture, in case of their use in other purposes or others
Users. But value of the factors used in manufacture of a product,
At their use in other purposes or other users also makes
Costs of the given product. Thus, we come to familiar and important
To conclusion that the payment for a product should equal to its costs. It also is
Principle which will allow us to discuss problems of an establishment of the price on separately
The taken goods, without tracing through all economic system of all consequences,
Generated by change of any one price.
HOW to APPLY this general reasoning on basing of the prices on costs to a case,
Which we consider, - to a case with falling average costs? Authors,
Which sights I analyze, put forward following alternatives: to appoint
The price equal to limiting costs (in this case there are losses), or
To charge price, equal to average costs (then losses do not arise). Is,
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