Production Function Geometry with "Knightian" Total Product

Autor/inn/en	Truett, Dale B.; Truett, Lila J.
Titel	Production Function Geometry with "Knightian" Total Product
Quelle	In: Journal of Economic Education, 37 (2007) 3, S.348-358 (11 Seiten)Infoseite zur Zeitschrift PDF als Volltext Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Zeitschriftenaufsatz
ISSN	0022-0485
DOI	10.3200/JECE.37.3.348-358
Schlagwörter	Microeconomics; Productivity; Graphs; Mathematical Logic; Validity; Textbooks; Economics Education + Suchen Sie Ihr Suchwort? Mikroökonomie; Produktivität; Grafische Darstellung; Mathematical logics; Mathematische Logik; Gültigkeit; Textbook; Text book; Schulbuch; Lehrbuch; Wirtschaftskunde
Abstract	Authors of principles and price theory textbooks generally illustrate short-run production using a total product curve that displays first increasing and then diminishing marginal returns to employment of the variable input(s). Although it seems reasonable that a temporary range of increasing returns to variable inputs will likely occur as variable inputs are added to a set of fixed ones. This proposition implies an isoquant diagram that is not a familiar one in text-books. The authors examine a linearly homogeneous production function conforming to the textbook case and construct its isoquant diagram. They then use a geometrical proof attributable to Geoffrey Jehle (2002) to demonstrate that, in general, isoquants must have, outside the traditional ridge lines, a range where they are convex toward those (MP = 0) ridge lines and another range where they are concave toward them if there are short-run increasing, then diminishing, marginal returns. The authors suggest how this issue might be presented to students. (Contains 3 figures, 2 tables and 8 notes.) (As Provided).
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Erfasst von	ERIC (Education Resources Information Center), Washington, DC
Update	2017/4/10