Factor Demand with a Variable Quantity of Cooperating Factors.

This article indicates a method of deriving a demand curve of an individual firm for a factor of production from marginal productivity analysis, on the assumption that the prices of the other factors of production are given, rather than their amounts. While the latter assumption permits the demand c...

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Publicado en:American Economic Review Vol. 41; no. 3; pp. 422 - 426
Autor principal: Budd, Edward C.
Formato: Artículo
Publicado: American Economic Association Jun51
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Acceso en línea:Ver este registro en EBSCOhost
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      pub: American Economic Association
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        atl: Factor Demand with a Variable Quantity of Cooperating Factors.
      aug:
        au: Budd, Edward C.
        affil: University of Illinois.
      su:
        Demand function
        Economics
        Factors of production
        Marginal productivity
        Mathematical models of economics
        Economic demand
        Commodity exchanges
      sug:
        subj:
          Demand function
          Economics
          Factors of production
          Marginal productivity
          Mathematical models of economics
          Economic demand
          Commodity exchanges
      ab: This article indicates a method of deriving a demand curve of an individual firm for a factor of production from marginal productivity analysis, on the assumption that the prices of the other factors of production are given, rather than their amounts. While the latter assumption permits the demand curve to be derived immediately from the total product curve of the variable factor, such a method is of limited usefulness. In any but the shortest-run period, the entrepreneur is generally in a position to vary his use. In the analysis featured in this article, it will be assumed for purposes of simplification that there is only one other factor (B), whose price is given for the firm. Conditions of demand for the firm's output are also assumed as given; the total product curves that will be used show the value of the total product to the firm. The slopes of the curves indicate marginal value (at revenue) productivity; hence the analysis is applicable to imperfect as well as to perfect competition in commodity markets.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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