Some Fallacies in the Interpretation of Social Cost

@article{KnightSomeFI,
  title={Some Fallacies in the Interpretation of Social Cost},
  author={Frank Hyneman Knight},
  journal={Quarterly Journal of Economics},
  volume={38},
  pages={582-606}
}
  • F. Knight
  • Published 1 August 1924
  • Economics
  • Quarterly Journal of Economics
Arguments for social interference developed by Pigou and Graham illustrate common misinterpretations of the meaning of cost and its variation with output, 582. — I. The private owner of a natural opportunity secures maximum return from it by charging that rent which halts the application of investment at the point which is socially most advantageous, 584. — II. The notion of decreasing cost is a fallacy; competitive price fixation under decreasing cost or increasing returns an impossible… 
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