Pregled bibliografske jedinice broj: 1229304
On a Geometric Programming Approach to Profit Maximization: The Case of CES Technology
On a Geometric Programming Approach to Profit Maximization: The Case of CES Technology // The Eurasia Proceedings of Science, Technology, Engineering & Mathematics (EPSTEM)
Istanbul, Turska, 2022. str. 7-15 (predavanje, međunarodna recenzija, cjeloviti rad (in extenso), znanstveni)
CROSBI ID: 1229304 Za ispravke kontaktirajte CROSBI podršku putem web obrasca
Naslov
On a Geometric Programming Approach to Profit
Maximization: The Case of CES Technology
Autori
Kojić, Vedran
Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni
Izvornik
The Eurasia Proceedings of Science, Technology, Engineering & Mathematics (EPSTEM)
/ - , 2022, 7-15
Skup
2nd International Conference on Basic Sciences, Engineering and Technology (ICBASET)
Mjesto i datum
Istanbul, Turska, 25.08.2022. - 28.08.2022
Vrsta sudjelovanja
Predavanje
Vrsta recenzije
Međunarodna recenzija
Ključne riječi
Profit maximization ; Cobb-Douglas technology ; CES technology ; Geometric programming
Sažetak
The profit maximization problem takes a central place in the theory of the firm, especially when conditions for perfect competition hold. In this paper, we solve the profit maximization problem of a perfectly competitive firm when the constant elasticity of substitution (CES) production function with n≥2 inputs describes its technology. Commonly, this problem is solved by using multivariable differential calculus. However, to avoid tedious algebraic manipulations and bypass checking nontrivial necessary and sufficient conditions, we employ geometric programming (GP), and the power mean inequality (PMI) as an elegant complementary tool to multivariable calculus. Since the GP and the PMI are simple optimization techniques without derivatives, they can provide new insights into the given problem to managers, students, and other audiences who may be unfamiliar with multivariable differential calculus. Additionally, by using the properties of limits, we show that the solution to the profit maximization problem with Cobb-Douglas technology is a limiting case of our result.
Izvorni jezik
Engleski
Znanstvena područja
Matematika, Ekonomija
Citiraj ovu publikaciju:
Časopis indeksira:
- Scopus