It has been long recognized that an ad valorem tax rate on revenues (demand) has its counterpart in costs (supply). Such a one to one correspondence is referred to as the Musgravian transformation. The transformation is monotonic and nonlinear. However, the property of concavity of the tax...

As is well known in the bilateral monopoly model, the solution regarding the price of the intermediate product cannot be determined uniquely. In this note, the author proposes a new solution that has narrower solution bound than that suggested by J. M. Henderson and R. E. Quandt (1971)....