Capital Intensity and the Combination of Factors of Production

Alain BarrÈre

Chapter Chapter 8 in The Theory of Capital, 1961, pp 143-160 from Palgrave Macmillan

Abstract: Abstract The entrepreneur has to combine factors of production on the basis of a rational calculation, certain elements of which can be determined only in advance. His forward-looking decision fixes the amount of capital to be combined with labour, and so determines the capital intensity of the firm.

Keywords: Capital Structure; Profit Maximization; Factor Combination; Total Profit; Indifference Curve (search for similar items in EconPapers)
Date: 1961
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DOI: 10.1007/978-1-349-08452-4_8

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