Abstract: The article focuses on the contribution of consumer cooperatives to optimum pricing policies. Economic efficiency concerns the allocation of resources among different by units. All business units follow a price policy which results in a scale of operations such that marginal cost is equal to the marginal demand price of the market. This is held to be the social optimum because the demand schedule is usually assumed to represent at least the monetary value placed by the market as a whole on the utility provided by the marginal unit and the marginal cost curve is identified with opportunity costs incident to using resources in making this same "final" unit of product. It will then prefer to equate marginal revenue and marginal cost and will consequently operate at a sub optimum volume and supraoptimum price. The purpose of a consumer cooperative is to provide the consumer interest and control are respectively paramount and aware of their real self-interest. The price policies of some consumer cooperatives are motivated by a desire to maximize profits.

Subjects: CONSUMER cooperatives; PRICING; RESOURCE allocation; PRICES; ORGANIZATIONAL behavior; DEMAND (Economic theory); SELF-interest