An Empirical Multi-Output Production Decision Model for the Profit Maximizing Multiproduct Firm

HTML  XML Download Download as PDF (Size: 247KB)  PP. 555-560  
DOI: 10.4236/tel.2015.54065    3,402 Downloads   4,129 Views  Citations

ABSTRACT

Empirical estimation of a theoretical multi-output production model that uses multiple inputs is difficult because of the complexities of its functional form. By using proper parameterization to linearize theoretical model’s functional form, this paper develops an empirical estimation for multi-output production decision using multiple inputs in the profit maximizing firm, namely, multi-output production decision model. The model aligns with the dual approach of cost minimization and revenue maximization for the profit maximizing multi-product firm while keeping jointness in production structurally intact.

Share and Cite:

Vorotnikova, E. and Asci, S. (2015) An Empirical Multi-Output Production Decision Model for the Profit Maximizing Multiproduct Firm. Theoretical Economics Letters, 5, 555-560. doi: 10.4236/tel.2015.54065.

Copyright © 2024 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.