Aren prices of production merely Neoclassical long-run equilibrium prices?
No. Neoclassical economics is commonly regarded as having been the dominant school of thought among Western academic economists for over a century. Although they had interesting precursors, W. Stanley Jevons, Carl Menger, and Leon Walras are usually thought to have initiated Neoclassical economics in the 1870s with almost simultaneous presentations of their theories. Briefly, Neoclassical economists claim to explain prices as the result of an equilibrium of Supply and Demand in all markets. The ultimate determinates of prices are technology, tastes (in the form of utility functions), and endowments. Equilibrium prices are thought to coordinate individual maximization problems. Alfred Marshall replaced the Classical distinction between market prices and prices of production with the notion of equilibrium existing in various runs. The most important of Marshall’s equilibrium concepts are short run and long run equilibrium. In short run equilibrium, agents in the economy have chosen the o
