Complex Lie group - Revision history

en>TakuyaMurata: /* Examples */ lk

2014-12-06T07:28:09Z

Examples: lk

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en>TakuyaMurata at 13:48, 5 February 2014

2014-02-05T13:48:08Z

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	~~In [[economics]]~~, the '''Leontief production function''' or '''fixed proportions production function''' is a [[production function]] that implies the [[factors of production]] will be used in fixed (technologically pre-determined) proportions, ~~as there is no~~ [~~[substitute good\|substitutability]] between factors~~. ~~It was named after [[Wassily Leontief]] and represents a [[limiting case]] of the [[constant elasticity of substitution]] production function.~~		Paediatrician Rusty Vancamp from Fort St. John, has pastimes for example crosswords, [http://diarisgodooo.com/blog/view/12883/launch-condo-penthouses-for-sale property Launch singapore] developers in singapore and button collecting. Gains motivation through travel and just spent 9 months at Paleochristian and Byzantine Monuments of Thessalonika.

	~~The function is of the form~~

	~~:<math>q = \text{Min}\left(\frac{z_1}{a},\frac{z_2}{b}\right)<~~/~~math>~~

	~~where ''q'' is the quantity of output produced, ''z''<sub>1<~~/~~sub> and ''z''<sub>2<~~/~~sub> are the utilised quantities of input 1 and input 2 respectively,~~ and ~~''a'' and ''b'' are technologically determined constants~~.

	~~==Example==~~

	~~Suppose that the intermediate goods "tires"~~ and "steering wheels" are used in the production of automobiles (for simplicity of the example, to the exclusion of anything else). Then in the above formula ''q'' refers to the number of automobiles produced, ''z''<sub>1</sub> refers to the number of tires used, and ~~''z''<sub>2</sub> refers to the number~~ of ~~steering wheels used~~. ~~Then the Leontief production function is~~

	~~:Number of cars = Min{¼ times the number of tires, 1 times the number of steering wheels}.~~

	~~==See also==~~
	* [[Cobb–Douglas production function]]
	* [[Isoquant]]

	~~==References==~~
	*{{cite book \|authorlink=R. G. D. Allen \|first=R. G. D. \|last=Allen \|title=Macro-economic Theory: A Mathematical Treatment \|location=London \|publisher=Macmillan \|edition= \|year=1968 \|page=35 }}

	~~[[Category:Business economics]]~~
	~~[[Category:Macroeconomics]]~~

	~~{{Econ-stub}}~~

en>TakuyaMurata: /* Examples */

2014-02-04T02:25:06Z

Examples

New page

In [[economics]], the '''Leontief production function''' or '''fixed proportions production function''' is a [[production function]] that implies the [[factors of production]] will be used in fixed (technologically pre-determined) proportions, as there is no [[substitute good|substitutability]] between factors. It was named after [[Wassily Leontief]] and represents a [[limiting case]] of the [[constant elasticity of substitution]] production function.

The function is of the form

:<math>q = \text{Min}\left(\frac{z_1}{a},\frac{z_2}{b}\right)</math>

where ''q'' is the quantity of output produced, ''z''1 and ''z''2 are the utilised quantities of input 1 and input 2 respectively, and ''a'' and ''b'' are technologically determined constants.

==Example==

Suppose that the intermediate goods "tires" and "steering wheels" are used in the production of automobiles (for simplicity of the example, to the exclusion of anything else). Then in the above formula ''q'' refers to the number of automobiles produced, ''z''1 refers to the number of tires used, and ''z''2 refers to the number of steering wheels used. Then the Leontief production function is

:Number of cars = Min{¼ times the number of tires, 1 times the number of steering wheels}.

==See also==
* [[Cobb–Douglas production function]]
* [[Isoquant]]

==References==
*{{cite book |authorlink=R. G. D. Allen |first=R. G. D. |last=Allen |title=Macro-economic Theory: A Mathematical Treatment |location=London |publisher=Macmillan |edition= |year=1968 |page=35 }}

[[Category:Business economics]]
[[Category:Macroeconomics]]

{{Econ-stub}}