Price Elasticities Implied by Homogeneous Production Functions

J. Michael Price

Journal of Agricultural Economics Research, 1994, vol. 45, issue 02, 3

Abstract: 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.

Keywords: Marketing (search for similar items in EconPapers)
Date: 1994
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uersja:137430

DOI: 10.22004/ag.econ.137430

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