Abstract
It is a well known fact that with a fixed set of active firms in an industry the distribution of aggregate input quantities between individual firms, obtained with profit-maximizing firms (that regard factor prices and product price as independent of their own decisions), is such that aggregrate output is maximized(1) Thus, perfect competition within a fixed set of active firms would seem to be efficient according to Paretian optimality criteria.
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© 1997 Springer-Verlag Berlin Heidelberg
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Puu, T. (1997). Free Entry and Efficient Distribution of Inputs in a one-product Industry. In: Andersson, Å.E., Beckmann, M.J., Löfgren, KG., Stenberg, M.A.A. (eds) Economics of Space and Time. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-60877-3_4
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DOI: https://doi.org/10.1007/978-3-642-60877-3_4
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