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 ?
Due to the apparent collaboration of market committee staff with wholesalers, farmers do not get optimal prices for their produce, while apart from the commission decided by the government, farmers also lose out due to the absence of a transparent system of grading and auction of agricultural products.
Knowing your costs is essential in setting optimal prices for your products, and so is knowing your customers' willingness to pay.
They conclude that if demand changes from price-sensitive to carbon emissions-sensitive, the manufacturer's optimal prices are the same but optimal production, optimal unit carbon emissions, and maximum expected profit go down.
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.
Our computational analysis has showed that more diversity in the shopping behavior--parameterized, for example, by the Shannon's entropy--entails lowering optimal prices and profits.
Such a complicated situation poses a conundrum for SPs and BAs attempting to determine their optimal prices to gain higher profits.
The external partner manages the licenses, purchasing new licenses for the LUKS, is optimal prices for LUKS and support in contract negotiations (with the public procurement law must be respected at all times during negotiations and procurement).
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".
Buying hams this time of year means you get optimal prices per pound.
We next argue that by approximating the value function V by a smooth upper bound [V.sup.w.sub.m], for an appropriate subset of value V, the firm will charge optimal prices in the long run.
The optimal spectrum allocation can be obtained when the optimal prices are achieved.
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