Abstract
This paper constructs a closed set Y in R l such that for all y in the boundary of Y, Clarke's normal cone to Y at y is equal to R l +. If Y is the production set of a firm, then the marginal cost pricing rule imposes no restriction. The existence of Y is shown to be equivalent to the existence of a Lipschitzian function f from R l−1 to R such that the generalized gradient of f is everywhere equal to the convex hull of 0 and the simplex of R l−1 .
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