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A note on the theory of the firm under uncertainty

Author

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  • Moawia Alghalith

Abstract

We show that the increase in price riskiness reduces the optimal output under increasing absolute risk aversion. That is, the marginal impact of the risk on output is independent of the type of absolute risk aversion (decreasing, constant, or increasing).

Suggested Citation

  • Moawia Alghalith, 2004. "A note on the theory of the firm under uncertainty," Revista de Economía del Rosario, Universidad del Rosario, June.
  • Handle: RePEc:col:000151:001925
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    File URL: http://revistas.urosario.edu.co/index.php/economia/article/view/1020/919
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    More about this item

    Keywords

    Price uncertainty; risk aversion; theory of the firm; uncertainty;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • D2 - Microeconomics - - Production and Organizations

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