Production Economics The Basic Theory of Production Optimisation
This book covers the basic theory of how, what and when firms should produce to maximise profits. Based on the neoclassical theory of the firm presented in most general microeconomic textbooks, it extends the general treatment and focuses on the applicati
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Svend Rasmussen
Production Economics The Basic Theory of Production Optimisation Second Edition
Svend Rasmussen Department of Resource Economics and Food Policy University of Copenhagen Frederiksberg Denmark
ISSN 2192-4333 ISSN 2192-4341 (electronic) ISBN 978-3-642-30199-5 ISBN 978-3-642-30200-8 (eBook) DOI 10.1007/978-3-642-30200-8 Springer Heidelberg New York Dordrecht London Library of Congress Control Number: 2012944979 # Springer-Verlag Berlin Heidelberg 2011, 2013 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Exempted from this legal reservation are brief excerpts in connection with reviews or scholarly analysis or material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Duplication of this publication or parts thereof is permitted only under the provisions of the Copyright Law of the Publisher’s location, in its current version, and permission for use must always be obtained from Springer. Permissions for use may be obtained through RightsLink at the Copyright Clearance Center. Violations are liable to prosecution under the respective Copyright Law. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors or omissions that may be made. The publisher makes no warranty, express or implied, with respect to the material contained herein. Printed on acid-free paper Springer is part of Springer ScienceþBusiness Media (www.springer.com)
Preface
In this second edition, Chap. 15 (Risk and Uncertainty) has been extended and includes now more on the theory of modelling risk and uncertainty. Further, a new Chap. 21 (Modelling Supply Functions Using Linear Programming) has been added, which includes a new example of using Linear Programming for production economic modelling. Finally, a number of misprints in the first edition have been corrected. Copenhagen April 2012
Svend Rasmussen
Preface to the first edition This book has been written as a textbook for the course Production Economics and is as such aimed at students of economics and other students who are interested in studying production economic theory at the unde
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