Despite this, bank bills have been slowly declining both as a share of managed funds' assets and the major banks' liabilities (Graph 15). This is partly due to the liquidity standards introduced over recent years, which reduced the value that banks place on short-term wholesale funding.
Setting prices equal to marginal cost insures that, at the margin, the value of the resources used to produce a given commodity is the same as their value in the next-best alternative employment. However, it is not a rule to be followed absolutely and in all events.