| Sumario: | This paper uses the concept of virtual prices to evaluate the impact of an input quantity constraint, such as a ration or quantity control, upon the competitive multiproduct profit-maximizing firm's factor demand, output supply, multiproduct cost and revenue structures, marginal implicit valuations of fixed factors, and capacity utilization. The properties of the input-rationed and unrationed output supply and factor demand functions, costs, and capacity utilization are related, consistently describing behavior under both regimes. Both Hicksian and Marshallian functions are assessed. The potential effects of input rationing upon wet rice production and labor utilization in the islands of Indonesia off-Java serves as a case study. Reprinted by permission of the publisher.
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