Production structure, output and profits - A note

Ilhan Dögüs

No 88, ZÖSS-Discussion Papers from University of Hamburg, Centre for Economic and Sociological Studies (CESS/ZÖSS)

Abstract: This paper argues that the case of product differentiation of concentrated markets (i.e., innovation competition) is one where production per unit of profit of non-financial corporations is lower than in competitive mass production and profit share is not an increasing function of capacity utilisation. Rather the desired excess capacity is higher compared since the break-even point where total costs and revenues equalize tends to be lower. The argument is supported with descriptive annual data for the period 1947-2019 in the USA.

Keywords: product differentiation; market structure; capacity utilisation; profits (search for similar items in EconPapers)
JEL-codes: D24 E12 L11 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-com, nep-hme, nep-ind and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cessdp:88

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