Quarterly Journal of Austrian Economics

Rothbard on V Shaped Average and Total Cost Curves

The Quarterly Journal of Austrian Economics


Volume 9, No. 3 (Fall 2006)


Rothbard (1993, pp. 638–45) refuted the important economic fallacy that excess  capacity is a normal consequence of profit maximizing behavior by businesses in some industries when they are in long-run equilibrium. And, in so doing provided a manifest example of misuse of mathematics in modern economics.


Barnett, William II and Walter Block. “Rothbard on V Shaped Average and Total Cost Curves.” The Quarterly Journal of Austrian Economics 9, No. 3 (Fall 2006): 61–66.

All Rights Reserved ©
What is the Mises Institute?

The Mises Institute is a non-profit organization that exists to promote teaching and research in the Austrian School of economics, individual freedom, honest history, and international peace, in the tradition of Ludwig von Mises and Murray N. Rothbard. 

Non-political, non-partisan, and non-PC, we advocate a radical shift in the intellectual climate, away from statism and toward a private property order. We believe that our foundational ideas are of permanent value, and oppose all efforts at compromise, sellout, and amalgamation of these ideas with fashionable political, cultural, and social doctrines inimical to their spirit.

Become a Member
Mises Institute