PROOF OF THE LAW OF DIMINISHING RETURNS
Abstract
Based on a general mathematical model of a technology, implying certain properties for the production function, weak and strong forms of a physical law of diminishing returns are derived. It is also shown that the classical forms of this law hold if the technology is homogeneous (degree one) and the production possibility sets of the technology are strictly convex, but the latter property violates an essential property of a technology, namely that these sets have bounded efficient subsets.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1969
- Accession Number
- AD0699154
Entities
People
- Ronald Shephard
Organizations
- University of California, Berkeley