PRODUCTION FUNCTION WITH CONSTANT ELASTICITY OF SUBSTITUTION RESOURCES
Journal Title: Вісник соціально-економічних досліджень - Year 2015, Vol 3, Issue 58
Abstract
The advantages of the production function with constant elasticity of substitution of resources (CES-function) and the possibility of its use in economic calculations are investigated in the article. The most important economic and mathematical parameters of CES-function and software its unknown factors evaluation are discussed. The optimal capital-maximizing output is determined. It is shown that in this case the marginal rate of substitution of resources equals to one. A new interpretation of it as an indicator of imbalances when investing in aggregate factors «capital» and «labor» is proposed. Deduced marginal rate of substitution of resources based on the optimal capital-labor ratio can be used as an important additional feature when applying the production function in the analysis output in the enterprises of Ukraine.
Authors and Affiliations
Volodymyr Yankovyi
Keywords
Related Articles
- EP ID EP179965
- DOI -
- Views 129
- Downloads 0
Marketing policy of services promotion in the hotel business of Ukraine
The world experience in the hotel product promotion sphere is investigated. The hotel activity and hotel services provision dynamics in Ukraine are analyzed. The experience of national and international hotel chains in p...
Perspectives of innovative development of recreational land use in Ukraine towards European integration
The аrticle substantiates the need for the transformation of existing approaches to change the institutional basis for recreational land use. The task of providing innovative development of recreational territories takin...
ANALYTICAL ESTIMATION OF THE SOUTHERN REGION ENTERPRISES FUNCTIONING EFFICIENCY
The article reveals the trends of development of meat processing enterprises of the Southern region in three main directions: analysis of production resources efficiency indicators; analysis of financial resources effici...
ORGANIZATIONAL AND ECONOMIC BASES OF UKRAINIAN SEAPORTS FUNCTIONING IN THE SYSTEM OF TRANSPORT SERVICE MARKET
The questions of intensification of Ukrainian regions socio-economic development are considered in the article. The principles of seaports functioning and development and increasing their competitiveness are formulated....
FINANCIAL STRATEGY: THEORETICAL ASPECTS OF DEVELOPMENT AND IMPLEMENTATION
Theoretical issues of formation of the financial strategy of the enterprise in modern conditions of economic development are investigated in the article. Its place and importance in the overall strategy of the company, t...