Production, Prices, and the Theory of Jointly-Derived Input Demand Functions.

The results of this study would seem to complete the analysis of jointly-derived input demand functions begun by Mosak, Allen, and Samuelson. Under the most general manageable assumptions, the following results have been obtained: (a) The quantity demanded of a factor must always vary inversely with...

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Publicado en:Economica Vol. 33; no. 132; pp. 454 - 462
Autor principal: Ferguson, C. E.
Formato: Artículo
Publicado: Wiley-Blackwell Nov66
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Production, Prices, and the Theory of Jointly-Derived Input Demand Functions.
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        au: Ferguson, C. E.
        affil: Duke University, Durham, N.C.
      su:
        Economic demand
        Prices
        Elasticity (Economics)
        Demand function
        Supply & demand
      sug:
        subj:
          Economic demand
          Prices
          Elasticity (Economics)
          Demand function
          Supply & demand
      ab: The results of this study would seem to complete the analysis of jointly-derived input demand functions begun by Mosak, Allen, and Samuelson. Under the most general manageable assumptions, the following results have been obtained: (a) The quantity demanded of a factor must always vary inversely with its price, (b) The commodity price will always vary directly with factor price if there are only two inputs or if there are many inputs and the production function is linearly homogeneous. There is strong reason to believe that commodity price also varies directly in the multi-factor model in the absence of a linearly homogeneous production function, (c) The quantity demanded of factory may vary either directly or inversely with the price of factor i. If the factors are complementary, it must vary inversely. When the factors are competitive, a direct relationship is more likely the greater is the (partial) elasticity of factor substitution and the smaller is the elasticity of commodity demand.
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    language: English
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