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

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DOI: 10.4236/tel.2015.54065    2,807 Downloads   3,220 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.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

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.

References

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