's fixed cost into a single framework. The first major lesson is that the existence of a break-even constraint not only … separable Hicksian demand case, the private goods (not included in the break-even constraint) continue to go untaxed as in the … Atkinson and Stiglitz setting. In the case where Marshallian demands are independent, the effect of the break-even constraint …

regulated firm's fixed cost into a single framework. The first major lesson is that the existence of a break-even constraint not … rules. In the separable Hicksian demand case, the private goods (not included in the break-even constraint) continue to go … break-even constraint spills over to the other goods which no longer go untaxed. We continue to get inverse elasticity rules …