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Fundamentals of a Cost Theory and Minimal Cost Combination

  • Günter Fandel

Abstract

So far, our production theoretical studies have been of a strictly quantity- orientated nature. Our objective was to represent the productive relations between factors of production and products, and we discussed them exclusively in terms of quantitative relations between input and output goods. In this context, we took into consideration the economic principle by introducing and applying an efficiency criterion. This allowed us to separate bad productions from good ones and to eliminate the bad ones. What was left were a technology’s efficient production points, which formed the basis for a description of productive relations by means of production functions.

Keywords

Production Function Product Quantity Factor Price Input Quantity Output Quantity 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin · Heidelberg 1991

Authors and Affiliations

  • Günter Fandel
    • 1
  1. 1.Faculty of Economics Department of Production ManagementHagenGermany

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