It seems there are three possibilities:
1. Economic profit
2. Cost including normal profit
3. Minimum average cost.
As an aid, how do vertically integrated firms set the prices of their own intermediate goods?
Intermediate production goods prices in the Soviet Union economy
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Intermediate production goods prices in the Soviet Union economy
It seems there are three possibilities:
1. Economic profit
2. Cost including normal profit
3. Minimum average cost.
As an aid, how do vertically integrated firms set the prices of their own intermediate goods?