Visualizing Variations in the Analysis of the Choice of Technique

CSWP 66 (June 2024)

Author Robert L. Vienneau

Keywords Choice of technique; Fixed Capital; Rent; Markup Pricing

JEL B51; C67; D24; D33;

This article describes a diagram that depicts how the analysis of the choice of technique varies with perturbations of selected parameters in models of production of commodities. Fluke switch points partition the graph. Three examples are provided, of circulating capital with markup pricing, of fixed capital with structural economic dynamics, and of intensive rent with markup pricing.

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