| Author: | Haller, H. Orr, D. |
| Title: | Stochastic demand, inventory management, and Chamberlinian excess capacity |
| Journal: | Journal of Institutional and Theoretical Economics
1991 : SEPT, VOL. 147:3, p.499-516 |
| Index terms: | MODELS MATHEMATICAL MODELS |
| Language: | eng |
| Abstract: | A model of the firm is presented which modifies Chamberlin's classic model. by introducing stochastic disturbances. Production costs are assumed to be quadratic and deterministic. The authors prove that in their model the excess capacity theorem may not hold: mean output can surpass the minimum average cost level of output in both the short run and the long run. |
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