Optimal Prices

Optimal Prices

 

under socialism, prices obtained in the process of calculating the optimal plan of production and consumption for a given array of economic data, using the methods of mathematical programming. The employment of optimal pricing on a national scale is possible only in a socialist economy, where the action of the basic economic law of socialism makes it possible to represent national economic planning in terms of problems in extremal dynamics.

Optimal prices possess the following characteristics. (1) They ensure the economic-accountability stimulation for carrying out planned tasks in physical (quantitative) terms; all forms of production that are part of the optimal plan and are measured in optimal prices are profitable, and rejected variants are unprofitable. (2) They evaluate the expenditures of separate economic units from the standpoint of their overall economic effectiveness. Optimal prices include not only direct expenditures incurred in producing a given product but the entire sum of additional costs borne by society in other sectors in relation to this output. (3) They reflect the increase or decrease of social costs and result exclusively within small changes in output or consumption of products. This quality of optimal prices permits their use in evaluating microeconomic processes.

N. IA. PETRAKOV

References in periodicals archive ?
Danas Janulionis, head of strategic planning at Amber Grid, believes that this should improve competition in the Baltic gas market and help ensure optimal prices for consumers and gas flows between the Baltic countries.
The board will also conduct international price research and facilitate the determination of optimal prices, propose input regulations and legislations for certified nurseries.
If a risk-neutral seller can estimate the probability density functions governing the largest bids at each future auction date, his optimal reservation price at each sequential auction is equal to the discounted expected value of the asset if it is not sold on that date and the reservation prices are the optimal prices for all subsequent auctions".
PROS gives customers far greater confidence and agility in their pricing strategies by providing data-driven insights into transaction profitability, forecasting demand, recommending optimal prices for each product and deal, and streamlining pricing processes with enhanced controls and compliance.
These are most optimal prices for Kyrgyzstan and Kazakhstan," said Artykbaev.
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The fuel and energy sector is a strategic infrastructure of the state which must ensure that Estonia gets an uninterrupted supply of high-quality fuel, electric energy and heat at optimal prices.
3) Banker and Hughes (1994) show that a multiple-product monopolist arrives at optimal prices and capacities based on full cost when the following two assumptions are met:
Previous research shows the importance of considering the impact of assortment on optimal prices.
And treating the topic separately leads nicely to consideration of David Sibley's proposal for motivating firms to choose optimal prices by requiring the use of self-selecting tariffs, which occupies much of Chapter 9.
In general, our results show that under (i), optimal prices should be higher than USMP in peak hours and in the winter, when price elasticities are lower.
The optimal prices and capacity choices in our model cannot be decoupled as in Banker and Hughes'(1994) single-period model.
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