| Sumario: | In the present paper, we propose to examine the decision problem confronting a multiproduct, multi-input firm facing random demand functions.[1] While our analysis will accommodate monopoly and/or monopsony, we are a bit restrictive in treating only the long-run case, i.e., we assume no fixed factors of production. The analysis is conducted in the expected utility maximization framework. Thus, different attitudes toward risk can be considered. By way of foreshadowing, as one would expect, the presence of uncertainty coupled with non-neutral attitudes toward risk lead to modifications of the traditional results. <BR> Due to the important results of portfolio theory and the lively interest in conglomerate firms, we examined our results for a certain class of utility functions, viz., the exponential. The purpose of this examination was to ascertain the multiproduct influence upon the output decision of a single product. The popularly held notion that product diversification will lead to an expansion of all outputs appears to be a special case.
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