Measurement of Capacity Utilization for Revenue-Maximizing Firms
Kathleen Segerson () and
Dale Squires
Bulletin of Economic Research, 1995, vol. 47, issue 1, 77-84
Abstract:
A dual measure of capacity utilization is developed for multiproduct, revenue-maximizing firms. Under the assumption of revenue maximization, the sensitivity of CU to a change in an individual product price is shown to be directly related to the product-specific scale elasticity. The results are given a simple graphical interpretation. Copyright 1995 by Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research
Date: 1995
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Persistent link: https://EconPapers.repec.org/RePEc:bla:buecrs:v:47:y:1995:i:1:p:77-84
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