Bellco FCU has over $21 million in assets and serves nearly 3,000 members, CUC Mortgage said.
(3) R-S then argue that since the terms in A are of different signs, ([p.sub.w] -- [MC.sub.w]) could be negative.
Thus, the example that R-S offer in their next section is crucial to their argument.
It is not the derived demand of a competitive farm sector, which is surely what R-S intended.
This observation now fully explains why R-S got their paradoxical result.
This, of course, does not prove R-S's claim incorrect, only that their proof is not valid.
Note that R-S incorrectly omitted the term [pi].sub.f] in their objective function, implicitly assigning zero social value to these profits.
In contrast, R-S consider a second-best level of investment (not prices) where second-best conditions are dictated by lumpiness of investment, by monopoly supply of the input, and by investment decisions made by central authority using grants from outside the economy.
R-S further impose two constraints, again from the point of view of the authority: that rate of return will not fall below its opportunity cost and that the final output market will not be thrown into disequilibrium by its decisions.
He is working in a standard Ramsey-pricing framework; R-S are not.
Taking note of the context and formulation of the problem as posed by R-S, it clears up the mystery of the monopolist farmer.
Finally, R-S do appreciate Tandon's careful review of the derivations in our paper.