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Theory of Production

  • Takashi Negishi
  • Takashi Negishi
Chapter
Part of the Advances in Japanese Business and Economics book series (AJBE, volume 2)

Abstract

To study the modern theory of the international trade, it is necessary to be familiar with the elementary theory of production. The basic model of an economy to be considered is a two-commodity two-factor one of a country. There are two industries, each of which produces a single different commodity from the input of two factors of production, say, labor and capital. The technology of an industry is given as an aggregate production function which relates the inputs of two factors of production to the output of a commodity.

Keywords

Production function Linear homogeneous function Expansion line Transformation curve Box diagram 

Bibliography

  1. Kemp, M. C. (1964). The pure theory of international trade. Engelwood Cliffs, NJ: Prentice-Hall.Google Scholar

Copyright information

© Springer Japan 2014

Authors and Affiliations

  • Takashi Negishi
    • 1
  • Takashi Negishi
    • 2
  1. 1.The Japan AcademyTokyoJapan
  2. 2.The University of TokyoTokyoJapan

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