1. PRICE REGULATION IN THE PAPER INDUSTRY.
- Author
-
Guthrie, J. A.
- Subjects
PRICE regulation ,PAPER industry ,TRADE regulation ,ECONOMIC policy ,ELASTICITY (Economics) ,ECONOMIES of scale ,PRICING - Abstract
The article discusses the implementation of price regulation in the paper industry. The industry has several characteristics that tend to escalate the effects of price competition such as heavy investment in equipment and slow investment turnover, large actual or potential excess capacity, inelastic demand for the product and little differentiation of product in some branches. In addition, price competition is also intensified due to the inelasticity of demand for paper. Moreover, the economies of scale are very considerable in the industry, specifically in integrated mills producing the cheaper standard papers.
- Published
- 1946
- Full Text
- View/download PDF