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Published in:

2023 | OriginalPaper | Chapter

1. Production Functions, Cost Minimization, and Profit Maximization

Author : Pasquale De Luca

Published in: Corporate Finance

Publisher: Springer International Publishing

Abstract

The production function of the firm must always be defined on the basis of the technological constraints: they limit the firm’s ability to produce the output as well as a defined level of it. Therefore, the technology analysis refers to the right definition of technological constraints and their impact on the production system.

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