"The size of a firm influences its competitive policies in a number of ways. In the first place the scale of its purchases and sales relative to the total volume of transactions in the firm's market is one indication of the extent of its market control. Taken in conjunction with other data it may throw a good deal of light on price and production policies. Certain authorities, on the other hand, brush aside figures on the relative size of firms as irrelevant and emphasize the decisive importance of the elasticity of the firm's demand curve. 3 It would no doubt be extremely convenient if economists knew the shape of individual demand and cost curves and could proceed forthwith, by comparisons of price and marginal cost, to conclusions regarding the existing degree of monopoly power. The extent to which the monopoly theorists, however, refrain from an empirical application of their formulae is rather striking."
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Academics from the United StatesHarvard University alumniEconomists from the United StatesHarvard University facultyPeople from Iowa
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Edward S. Mason
(February 22, 1899 – February 29, 1992) was an American economist and professor at Harvard University. He was the Dean of the Graduate School of Public Administration, now known as the John F. Kennedy School of Government, from 1947 to 1958. He was the president of the American Economic Association in 1962. He became known for his work in industrial organization, an area in which provided direct inspiration to Joe Bain for his SCP model, and in development economics.
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