Price Elasticities Implied by Homogeneous Production Functions

If a production process is characterized by a homogeneous production function, the conditions required for profit maximization imply that the elasticity of demand for each input must be elastic with respect to output price. This restriction limits the usefulness of these functions in empirical analysis.


Subject(s):
Issue Date:
1994
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/137430
Published in:
Journal of Agricultural Economics Research, Volume 45, Number 2
Total Pages:
3




 Record created 2017-04-01, last modified 2017-08-26

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