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market distortion (DO)<br />A market allocation that fails to reach a social optimum. Sometimes this occurs because of government intervention.
accounting costs (M4)<br />All the costs of producing a good or service recorded in the accounts of a firm. These include most economic costs but are likely to omit the cost of the owner's time and the OPPORTUN!1Y COST of the financial capital used in the firm.
Lerner, Abba Ptachya, 1903-82 (B3) Anglo-American economist, born in Bessarabia (Romania), who emigrated as a child to the UK. After working as a businessman, he studied and taught at the London School of Economics from 1929 to 1939. In 1939 he emigrated to the USA, where he was to teach in nine universities, including Berkeley from which he retired in 1979. His measure of monopoly power published in 1934 helped to found the MARGINAL COST PRICING rule of applied WELFARE ECONOMICS. His London School of Economics doctoral thesis was published as The Economics of Control in 1944: it sets out the basic principles to be followed by an economic policy-maker, including PARETO OPTIMALITY, equal distribution of income and budgeting with reference to employment and price effects. He was an early convert to KEYNES!ANISM which he enhanced by his work after 1945 on the problem of controlling inflation, including the construction of his anti-inflation plan.<br /><em>See also:</em> market anti-inflation plan <br /><em>Reference</em><br />Colander, D.C. (ed.) (1983) Selected Economic Writings of Abba P Lerner, New York: New York University Press.<br /> Scitovsky, T (1984) 'Lerner's contribution to economics', Journal of Economic Literature 22: 1547-71.
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