Some Concluding Comments

The argument of this book has been concerned with various aspects of marginal-cost pricing. Some readers will be unconvinced of the case for marginal-cost pricing; others may feel that the informational requirements of tariffs which reflect marginal costs are too great to be satisfied. In these circumstances it may be felt that, since in a second-best setting to relate prices to marginal costs is more or less an act of faith, it may well be preferable to relate prices to average costs ([10] p. 120).