Accession Number : AD0655826
Title : MEASURING THE QUANTITIES OF FIXED FACTORS.
Descriptive Note : Technical rept.,
Corporate Author : STANFORD UNIV CALIF INST FOR MATHEMATICAL STUDIES IN THE SOCIAL SCIENCES
Personal Author(s) : Gorman,William M.
Report Date : 01 JUL 1967
Pagination or Media Count : 71
Abstract : In a certain economy there are a number of variable goods, whose efficiency prices are the same in all firms, and of fixed inputs for which this need not be so. These fixed inputs fall into classes called factors. In the paper necessary and sufficient conditions are found for the existence of 'quantities' of these fixed factors in terms of which the production possibilities facing the economy as a whole can be specified. It turns out to be convenient to measure them in terms of their capacity to earn profits; that if so, analogous aggregates exist for each firm in terms of which its production possibilities can be specified, and that the quantities in the economy as a whole are the sums of those in the individual firms. The conditions for this to be possible are restrictive. In particular they imply that an extra unit of 'equipment', for instance, will be used in exactly the same way whichever firm gets its. (Author)
Descriptors : (*INDUSTRIES, *ECONOMICS), INDUSTRIAL PRODUCTION, DISTRIBUTION(ECONOMICS), MONEY, FACTOR ANALYSIS, SET THEORY
Subject Categories : Economics and Cost Analysis
Distribution Statement : APPROVED FOR PUBLIC RELEASE