IDEAS home Printed from https://ideas.repec.org/a/taf/jeduce/v37y2006i3p348-358.html
   My bibliography  Save this article

Production Function Geometry With "Knightian" Total Product

Author

Listed:
  • Dale B. Truett
  • Lila J. Truett

Abstract

Abstract: Authors of principles and price theory textbooks generally illustrate short-run production using a total product curve that displays first increasing and then diminishing marginal returns to employment of the variable input(s). Although it seems reasonable that a temporary range of increasing returns to variable inputs will likely occur as variable inputs are added to a set of fixed ones. This proposition implies an isoquant diagram that is not a familiar one in text-books. The authors examine a linearly homogeneous production function conforming to the textbook case and construct its isoquant diagram. They then use a geometrical proof attributable to Geoffrey Jehle (2002) to demonstrate that, in general, isoquants must have, outside the traditional ridge lines, a range where they are convex toward those ( MP = 0) ridge lines and another range where they are concave toward them if there are short-run increasing, then diminishing, marginal returns. The authors suggest how this issue might be presented to students.

Suggested Citation

  • Dale B. Truett & Lila J. Truett, 2006. "Production Function Geometry With "Knightian" Total Product," The Journal of Economic Education, Taylor & Francis Journals, vol. 37(3), pages 348-358, July.
  • Handle: RePEc:taf:jeduce:v:37:y:2006:i:3:p:348-358
    DOI: 10.3200/JECE.37.3.348-358
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.3200/JECE.37.3.348-358
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jeduce:v:37:y:2006:i:3:p:348-358. 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: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/VECE20 .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.