w*****g
发帖数: 47 | 1 what do u need this for?
why do u particularly need the production function to be like this? you can
use the function as u like to model it. of course, the C-D function has some
wonderful properties.
does this has something to do with your major work? and what is the realation
ship between C-D function and returns to scale? i think this may be related
to IO (returns to scale determine the size of degree of integration of firms) | w*****g
发帖数: 47 | 2 what does u mean by "apply to a particular sector of economy"? does it mean
that you want to examine whether the product function for a particular industry
(or firm) follows the C-D type?
the idea behind why returns to scale determine the size or degree of integration
of firms, is that firms always has the potential and ability to expand in size
if their cost decline with outpute, that is, if there is increasing return to
scale. but their returns to scale can't be always increasing; when the o | w*****g
发帖数: 47 | 3 it is econ 220A
the book is "the theory of industrial organization" by Tirole |
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