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Joint Profit Maximization, Negotiation, and the Determinacy of Price in Bilateral Monopoly
Dale B. Truett and Lila J. Truett
The Journal of Economic Education
Vol. 24, No. 3 (Summer, 1993), pp. 260-270
Published by: Taylor & Francis, Ltd.
Stable URL: http://www.jstor.org/stable/1183126
Page Count: 11
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Many economists teach that joint profit maximization leads to a determinate quantity and indeterminate price of the intermediate good traded. Using isoprofit curves, the Truetts argue that only one price is consistent with rational behavior and the goal of profit maximization.
The Journal of Economic Education © 1993 Taylor & Francis, Ltd.