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 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

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Type of publication:	Book / Working Paper
Language:	English
Notes:	Prada-Sarmiento, Juan David (2010): A note on concavity, homogeneity and non-increasing returns to scale. Published in: Economics Bulletin , Vol. 31, No. 1 (4 January 2011): pp. 100-105.
Classification:	D20 - Production and Organizations. General ; D24 - Production; Capital and Total Factor Productivity; Capacity ; C60 - Mathematical Methods and Programming. General
Source:	BASE

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