Neoclassical Theories of Production

Contents

I - INTRODUCTION

II - TECHNICAL ASPECTS OF PRODUCTION

(1) The Production Function
(A) The Production Function
(B) Marginal Productivity
(i) The Law of Diminishing Returns
(ii) The Law of Variable Proportions
(C) Isoquant Analysis

(2) Returns to Scale
(A) Understanding Returns to Scale
(B) Euler's Theorem
(C) Homogeneity and Homotheticity
(D) The Intensive Production Function

(3) Technology and Substitution
(A) Leontief (Fixed Proportions) Technology.
(B) Activity Analysis Technology
(C) Putty-Clay Technology

(4) The Elasticity of Substitution
(A) Measuring Substitutability
(B) Elasticity of Substitution under Constant Returns to Scale
(C) Cobb-Douglas Production Functions
(D) Constant Elasticity of Substitution (CES) Production Functions
(E) Elasticities of Substitution in Multi-Input Cases

III - THE PRODUCTION DECISION

(1) The Production Decision: A First Approach
(A) The Paretian Producer
(B) Cost-Minimization
(C) Output-Maximization and Duality
(D) Profit-Maximization and Indeterminacy

(2) The Cost Function
(A) The Cost Function
(B) The Derived Demand for Factors
(i) Factor Price Effects
(ii) Output Effects
(C) Costs and Returns to Scale
(D) Factor Price Frontiers

(3) The Profit Function
(A) Profit-Maximization
(B) The Profit Function
(C) Output Supply and Factor Demand Functions
(i) Basic Relationships
(ii) Decomposing Factor Demand


IV - PRODUCTION IN EQUILIBRIUM

(1) Production in General Equilibrium Theory
(A) The Walras-Cassel System
(B) The Paretian System I: Equilibrium
(C) The Neo-Walrasian Theory of Production
(D) Equilibrium under Uncertainty: Production and Finance

(2) The Neoclassical Theory of Distribution
(A) Factor Payments and the Concept of Rent
(B) The Marginal Productivity Theory of Distribution
(i) The Product Exhaustion Theorem
(ii) Early Debates on Marginal Productivity
(C) Substitution and Distribution

(3) The Opportunity Cost Doctrine
(A) Opportunity Cost
(B) The Austrian-Marshallian Debate

(4) Theory of Capital and Investment
(A) The Neoclassical Theory of Capital
(B) The Austrian Theory of Capital
(C) The Walrasian Theory of Capital
(D) The Theory of Investment

(5) Technical Progress

(6) Profits and Entrepreneurship

V - THE THEORY OF THE FIRM

(1) The Marshallian Firm

(2) Sraffa's Critique

(3) The Maximization Debates
(A) The Old Marginalism Debate
(B) The New Institutionalist Theories
(C) The Evolutionary Theory of the Firm

VI - IMPERFECT COMPETITION

(1) Monopoly

(2) Imperfect Competition

(3) Monopolistic Competition

(4) Oligopoly

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