Heavy Lifting - thoughts and web finds by an economist
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Wednesday, July 27, 2005

Repost on the relationship between price and cost

There was a discussion on the ECON-LAW listserv a couple of weeks ago about the empirical studies that find a link between price and cost. There was a contention that the connection was tenuous at best. I had posted this before, but the link to the picture was broken.

I found this graph particularly compelling, offered by R. Morris Coats. As he suggested, do you need an empirical study for proof that price and cost are connected?

This is a great picture.

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