ROUND TABLE ON COST AND DEMAND FUNCTIONS OF THE INDIVIDUAL FIRM.

The article presents discussion on the cost an demand functions of the individual firms. It has been argued by an economist that measurement of statistical cost function can only have the purpose of gaining insight into the motives of entrepreneurs' decisions. Such measurements are beset with diffic...

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Publicado en:American Economic Review Vol. 32; pp. 349 - 351
Autor principal: Schumpeter, Joseph A.
Formato: Resumen
Publicado: American Economic Association Mar42 Supplement
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: ROUND TABLE ON COST AND DEMAND FUNCTIONS OF THE INDIVIDUAL FIRM.
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        au: Schumpeter, Joseph A.
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        Business enterprises
        Industrial costs
        Demand function
        Factors of production
        Industrial policy
        Production (Economic theory)
        Cost accounting
        Direct costing
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        subj:
          Business enterprises
          Industrial costs
          Demand function
          Factors of production
          Industrial policy
          Production (Economic theory)
          Cost accounting
          Direct costing
      ab: The article presents discussion on the cost an demand functions of the individual firms. It has been argued by an economist that measurement of statistical cost function can only have the purpose of gaining insight into the motives of entrepreneurs' decisions. Such measurements are beset with difficulties some of which are insurmountable, for example the determination of the volume of output when production is diversified, and the elimination of technological changes. Some arguments first dealt with a number of difficulties incidental to the attempt to construct cost functions from cost accounting material, in particular the possible bias toward linearity imparted to them by straight-line depreciation and other accounting practices. Other difficulties arise in connection with the conjectural cost function which is primarily relevant for the purposes of price administration. In a research conducted by some economists the costs, defined as total sales value minus net income and adjusted in various ways by the available series of individual cost items, revealed linear functions in all cases and comparatively slight differences in marginal costs as between the concerns studied.
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    language: English
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