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Theory of Production and Cost (Paperback, Softcover reprint of the original 1st ed. 1991)
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Theory of Production and Cost (Paperback, Softcover reprint of the original 1st ed. 1991)
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Production theory and the theory of cost both belong to the central
areas of business administration, for all considerations concerning
the economic organization of industrial manufacturing processes
start from these. Two developments in the past 30 years have had a
considerable influence on the structure and the concentration on
points of emphasis in this book. I am referring to findings from
KOOPMANS' activity analysis and to the formulation by GUTENBERG of
a production function concept that focuses on industrial production
processes. Activity analysis has made it possible to develop, from
a uniform approach, different types of production functions which
describe the concrete principles of production in the productive
sector of a business enterprise; this has created a common basis
for all production concepts in business administration. The
Gutenberg Production Function with its different kinds of
adjustment to a changing output has opened up a flexibility to
theoretical and practical considerations that gave rise to a large
number of additional studies in this area. Considerations in cost
theory were in particular need of considerable extensions in the
direction of cost minimal combined adjustment processes. By means
of the organization of its contents, this book will take both
approaches into due account. In that way, it is vastly different
from other books dealing with the same subject. As a matter of
course, traditional analytical methods and ways of thinking also
constitute a large part of the book.
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