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Ramsey problem
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==Ramsey condition== An easier way to solve this problem in a two-output context is the Ramsey condition. According to Ramsey, in order to minimize [[deadweight loss]]es, one must increase prices to rigid and elastic demands/supplies in the same proportion, in relation to the prices that would be charged at the [[Theory of the second best|first-best]] solution (price equal to marginal cost).
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