search query: @author Ramachandran, R. / total: 4
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| Author: | Sato, R. Ramachandran, R. |
| Title: | Factor price variation and the Hicksian hypothesis: A microeconomic model |
| Journal: | Oxford Economic Papers
1987 : JUN, VOL. 39:2, p. 343-356 |
| Index terms: | COST REDUCTION MICROECONOMICS |
| Language: | eng |
| Abstract: | A microeconomic model of a profit-maximizing firm which, faced with differential increases in input prices, could develop compensating cost reducing technologies is proposed. It is assumed that factor prices are increasing at different rates and the monopolistic firm through allocation of resources of research can determine the rate of augmentation of each factor. The existence of an optimal research policy and of steady-states as also paddle-point stability are considered. The extension of the model is also discussed. |
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