A note on concavity, homogeneity and non-increasing returns to scale

This paper provides a simple proof of the result that if a production function is homogeneous, displays non-increasing returns to scale, is increasing and quasiconcave, then it is concave. If the function is strictly quasiconcave or one-to-one, homogeneous, displays decreasing returns to scale and if either it is increasing or if \mathbf{0} is in its domain, then it is strictly concave. Finally it is shown that we cannot dispense with these assumptions.

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Year of publication:	2010-09
Authors:	Prada-Sarmiento, Juan David
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Homogeneity \| Concavity \| Non-Increasing Returns to Scale \| Production Function

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	D20 - Production and Organizations. General ; D24 - Production; Capital and Total Factor Productivity; Capacity ; C60 - Mathematical Methods and Programming. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008765094