ŒCONOMICA On the General Theory of Production Functions Catalin Angelo Ioan1, Gina Ioan2 Abstract: In this paper we will study from an axiomatic point of view the production functions. Also we will define the main indicators of a production function,...
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ŒCONOMICA On the General Theory of Production Functions Catalin Angelo Ioan1, Gina Ioan2 Abstract: In this paper we will study from an axiomatic point of view the production functions. Also we will define the main indicators of a production function, extending the classical definitions to n inputs and introducing other new. We will modify the notion of global average productivity and replace it with more realistic indicators. On the other hand, the notion of global rate of substitution will be introduced to the analysis of n goods. Keywords: production function; productivity; marginal JEL Classification: D01 1. Introduction In any economic activity, obtaining a result of this means, implicitly, the existence of any number of resources required for a good deployment of the production process. We will assume that resources are indefinitely divisible, which implies the possibility of using specific tools of mathematical analysis to onset specific phenomena. We then define on Rn the produc
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