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- Title
THE EQUILBRIUM OF THE FIRM IN MULTI-PROCESS INDUSTRIES.
- Authors
Eiteman, Wilford J.
- Abstract
The article examines the equilibrium of a firm in multi-process industries. Here, the argument centers on the data contained in the familiar input-output table. At least three basically different types of assumptions are involved in the construction of such tables. All of the relationships represented in them are assumed, but some of their data could be ascertained objectively, if the situations illustrated by the tables were real rather than hypothetical. Hereafter data of a type that would be known to an entrepreneur in real life will be referred to as "objective-like assumptions." In a purely hypothetical situation it will always be necessary to accept one set of assumptions as "objective-like" assumed facts. In manufacturing, labor is commonly treated as the variable factor. When only a single process is involved in the productive routine, the quantity of labor applied has such a close physical association with the resulting output as to cause managers in their thinking to attribute the value created to the labor applied. In such cases, too, expansion of output is achieved by applying more labor to more raw materials.
- Subjects
INPUT-output tables; LABOR; PRIMARY commodities; ENTREPRENEURSHIP; RAW materials; ECONOMIC equilibrium
- Publication
Quarterly Journal of Economics, 1945, Vol 59, Issue 2, p280
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1884828