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A constant elasticity of profit production function

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  • Beard, Rodney

Abstract

Impact analysis of changes in production inputs may be simplified if one can apply a constant adjustment factor to profit. In particular, if a production function can be found for which the elasticity of profit is constant and this function has desirable properties, then one can use the input elasticity of profit to study the impact of input changes on profit. In this paper such a production function is derived from first principles.

Suggested Citation

  • Beard, Rodney, 2007. "A constant elasticity of profit production function," MPRA Paper 5796, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:5796
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    References listed on IDEAS

    as
    1. Shen, T Y, 1970. "Economies of Scale, Penrose Effect, Growth of Plants and Their Size Distribution," Journal of Political Economy, University of Chicago Press, vol. 78(4), pages 702-716, Part I Ju.
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    More about this item

    Keywords

    Impact analysis; Production economics; elasticities;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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