A Note on the Elasticity of Derived Demand Under Decreasing Returns.

This article focuses on the elasticity of derived demand for a factor of production under conditions of decreasing returns to scale. The smaller the elasticity, the stronger the trade union power may be expected to be in the industry. Recent studies have been conducted by several researchers on the...

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Publicado en:American Economic Review Vol. 64; no. 4; pp. 697 - 701
Autor principal: Razin, Assaf
Formato: Artículo
Publicado: American Economic Association Sep74
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: A Note on the Elasticity of Derived Demand Under Decreasing Returns.
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        au: Razin, Assaf
        affil: Department of Economics, Tel-Aviv University
      su:
        Elasticity (Economics)
        Economic demand
        Demand function
        Production (Economic theory)
        Labor unions
        Economics
        Imperfect competition
      sug:
        subj:
          Elasticity (Economics)
          Economic demand
          Demand function
          Production (Economic theory)
          Labor unions
          Economics
          Imperfect competition
      ab: This article focuses on the elasticity of derived demand for a factor of production under conditions of decreasing returns to scale. The smaller the elasticity, the stronger the trade union power may be expected to be in the industry. Recent studies have been conducted by several researchers on the generalizations on the Marshall-Hicks analysis into situations of multiplicity on the factors of production, allowing for various possibilities of substitution and complementary in production. While these studies were done in the context of a perfectly competitive industry, Patrick Yeung developed rules of derived demand in the context of imperfect competition. The traditional analysis is confined, however, to the assumption of constant returns. This assumption may be inappropriate for short-run analyses where some factors of production are temporarily immobile. If one is interested, therefore, in the short-run properties of the demand for factors of production, the assumption of decreasing returns may be more plausible.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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          year: 1974
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