In this article, the authors report a general existence theorem of a marginal (cost) pricing equilibrium for an economy that may exhibit increasing returns to scale or more general types of nonconvexities in the production sector. Their model considers an arbitrary number of firms and no...

This paper considers a general equilibrium model of an economy where some firms may exhibit increasing returns to scale or more general types of nonconvexities. The firms are instructed to follow the standard marginal cost pricing rule or to fulfill the first-order necessary conditions for...