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Ray scale economies and multiproduct cost functions

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posted on 2024-11-15, 23:40 authored by Jorge Fernandez-PolJorge Fernandez-Pol
The purpose of this paper is to show that if the ray scale economies depend on the output vector alone, it is possible to derive the full behaviour of costs as output bundles change. The formal proofs provide operational criteria for generating multiproduct cost functions for which ray scale economies depend either on cost level alone, or on output proportions alone, in a presassigned manner.

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Article/chapter number

90-8

Total pages

8

Language

English

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