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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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Citations: View citations in EconPapers (19)

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