Capital Intensity and the Combination of Factors of Production

  • Alain BarrÈre
Part of the International Economic Association Series book series (IEA)


The entrepreneur has to combine factors of production on the basis of a rational calculation, certain elements of which can be determined only in advance. His forward-looking decision fixes the amount of capital to be combined with labour, and so determines the capital intensity of the firm.


Capital Structure Profit Maximization Factor Combination Total Profit Indifference Curve 
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  1. 2.
    Alain Barrere, ‘L’Analyse des relations entre le capital et la production’, Revue d’Economie Politique, 1955, pp. 332–408.Google Scholar
  2. 1.
    F. A. Lutz, ‘Théorie du capital et théorie de la production’, Economie Appliquée, 1948, p. 8.Google Scholar

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© International Economic Association 1961

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  • Alain BarrÈre

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