Leontief production function
Function in economics
In economics, the Leontief production function or fixed proportions production function is a production function that implies the factors of production which will be used in fixed (technologically predetermined) proportions, as there is no substitutability between factors. It was named after Wassily Leontief and represents a limiting case of the constant elasticity of substitution production function.
Nº Q1819524 ★
Common · History
Leontief production function
Function in economics
In economics, the Leontief production function or fixed proportions production function is a production function that implies the factors of production which will be used in fixed (technologically predetermined) proportions, as there is no substitutability between factors. It was named after Wassily Leontief and represents a limiting case of the constant elasticity of substitution production function.
From Wikipedia
In economics, the Leontief production function or fixed proportions production function is a production function that implies the factors of production which will be used in fixed (technologically predetermined) proportions, as there is no substitutability between factors. It was named after Wassily Leontief and represents a limiting case of the constant elasticity of substitution production function. For the simple case of a good that is produced with two inputs, the function is of the form q = Min ( z 1 a , z 2 b ) {\displaystyle q={\text{Min}}\left({\frac {z_{1}}{a}},{\frac {z_{2}}{b}}\right)} where q is the quantity of output produced, z1 and z2 are the utilised quantities of input 1 and input 2 respectively, and a and b are technologically determined constants.
Text: Wikipédia, CC BY-SA 4.0. · Image: Luca Verginer (CC BY-SA 4.0) ·
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