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A constant elasticity of profit production function

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Author Info
Beard, Rodney

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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.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 5796.

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Date of creation: Nov 2007
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Handle: RePEc:pra:mprapa:5796

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Related research
Keywords: Impact analysis Production economics elasticities

Find related papers by JEL classification:
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics

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This page was last updated on 2008-11-17.

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