Abstract
The firms of our models so far used only one input. Real production operations, however, use multiple inputs and are able to substitute, within limits, one input for another. This substitution in a competitive firm with two inputs, X and Y, is captured in the models of this chapter. First, we identify the realm of minimum X-Y combinations that yield a given output. In the following section we identify then the profit-maximizing output level together with the optimal combination of inputs.
This is the principle upon which the sacrifice of love acts, as distinguished from the sacrifice of mere substitution. —Thomas Mozley, Universal Sermons
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© 2001 Springer Science+Business Media New York
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Hannon, B., Ruth, M. (2001). Substitution. In: Dynamic Modeling. Modeling Dynamic Systems. Springer, New York, NY. https://doi.org/10.1007/978-1-4613-0211-7_27
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DOI: https://doi.org/10.1007/978-1-4613-0211-7_27
Publisher Name: Springer, New York, NY
Print ISBN: 978-1-4612-6560-3
Online ISBN: 978-1-4613-0211-7
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