Advanced Search
MyIDEAS: Login to save this article or follow this journal

Short-run and long-run marginal costs of joint products in linear programming

Contents:

Author Info

  • Axel Pierru
Registered author(s):

    Abstract

    In standard microeconomic theory, short-run and long-run marginal costs are equal for production equipment with adjusted capacity. When the production of joint products from interdependent equipment is modeled with a linear program, this equality is no longer verified. The short-run marginal cost then takes on a left-hand value and a right-hand value which generally differ from the long-run marginal cost. In this article, we demonstrate and interpret the relationship existing between long-run marginal cost and short-run marginal costs for a given finished product. That relationship is simply expressed as a function of marginal capacity adjustments (determined in the long run) and marginal values of capacities (determined in the short run). JEL Classification: D20, C61

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.cairn.info/load_pdf.php?ID_ARTICLE=REL_732_0153
    Download Restriction: restricted

    File URL: http://www.cairn.info/revue-recherches-economiques-de-louvain-2007-2-page-153.htm
    Download Restriction: restricted

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by De Boeck Université in its journal Recherches économiques de Louvain.

    Volume (Year): 73 (2007)
    Issue (Month): 2 ()
    Pages: 153-171

    as in new window
    Handle: RePEc:cai:reldbu:rel_732_0153

    Contact details of provider:
    Web page: http://www.cairn.info/revue-recherches-economiques-de-louvain.htm

    Related research

    Keywords: microeconomics; marginal cost; linear programming;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Massol, O., 2011. "A cost function for the natural gas transmission industry: further considerations," Working Papers 11/03, Department of Economics, City University London.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:cai:reldbu:rel_732_0153. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jean-Baptiste de Vathaire).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.