The Theory of the Firm and the Concept of an Elasticity of Substitution in Product Space
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Much of the theory of the firm in product space is not nearly as well developed as the theory of the firm in factor space. For example, both general and agricultura1 economists have devoted considerable effort to developing functional forms representing production processes in factor space, but the companion effort in product space has been very limited. The purpose of this paper is to present some product-space concepts analogous to those commonly used in factor space.