Cost and Revenue Constrained Production
The basic notion underlying this monograph - budget or revenue constrained models of production - we owe to Ronald W. Shephard, who recognized its fundamental importance in modeling behavior in a wide variety of settings including the service and public s
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S. Togan (Editor) S.N. Afriat (Mathematical Economics) A.O. Krueger (International Economics) T. J. Sargent (Mathematical Economics) S.M. Time; (Finance)
Bilkent University Lecture Series Vol. 1:
S. Ranka and S. Sahni: Hypercube Algorithms. With Applications to Image Processing and Pattern Recognition.
Vol. 2:
I. Sahin: Regenerative Inventory Systems. Operating Characteristics and Optimization.
Vol. 3:
C.l. Morrison: A Microeconomic Approach to the Measurement of Economic Performance. Productivity Growth, Capacity Utilization, and Related Performance Indicators.
Vol. 4:
R. Fare and S. Grosskopf: Cost and Revenue Constrained Production.
Rolf Fare
Shawna Grosskopf
Cost and Revenue Constrained Production
With 33 Figures
Springer-Verlag New York Berlin Heidelberg London Paris Tokyo Hong Kong Barcelona Budapest
Prof. ROLF FARE
Prof. SUAWNA GROSSKOPF
Department of Economics College of Liberal Arts Southern Illinois University at Carbondale Carbondale, IL 62901 USA
Department of Economics College of Liberal Arts Southern Illinois University at Carbondale Carbondale, IL 62901 USA
Bilkent University Lecture Series Mathematical Economics and Finance Track Editor
Advisory Board Chairman
Prof. Sl1bidey Togan Faculty of Economics, Administrative and Social Sciences Bilkent University Bilkent, 06533 Ankara, Turkey
Prof. Ali Dogramacl Office of the Board of Trustees Bilkent University Bilkent, 06533 Ankara, Turkey
Library of Congress Cataloging-in-Publication Data Fare, Rolf, 1942Cost and revenue constrained production / Rolf Fare, Shawna Grosskopf. p. cm. - (Bilkent University lecture series; v. 4) Includes bibliographical references and index. ISBN-13: 978-1-4612-7613-5 DOl: 10.1007/978-1-4612-2626-0
e-ISBN-13: 978-1-4612-2626-0
1. Production functions (Economic theory). 2. Econometric models. 3. Duality theory (Mathematics). I. Grosskopf, Shawna. II. Title. III. Series. HB241.F326 1994 338.5 -dc20 93-32408 Printed on acid-free paper.
© 1994 Springer-Verlag New York, Inc. All rights reserved. This work may not be translated or copied in whole or in part without the written permission of the publisher (Springer-Verlag New York, Inc., 175 Fifth Avenue, New York, NY 10010, USA), except for brief excerpts in connection with reviews or scholarly analysis. Use in connection with any form of information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed is forbidden. The use of general descriptive names, trade names, trademarks, etc., in this publication, even if the former are not especially identified, is not to be taken as a sign that such names, as understood by the Trade Marks and Merchandise Marks Act, may accordingly be used freely by anyone. Camera-ready copy prepared by the authors.
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Preface The basic notion underlying this monograph - budget or revenue constrained models of production - we owe to Ronald W. Shephard, who recognized its fundamental importance in modeling behavior in a wide variety of s
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