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Prices and Demands for Input Characteristics
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Prices and Demands for Input Characteristics

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  • George W. Ladd
  • Marvin B. Martin

Abstract

Price of an input equals the sum of the money values of the input's characteristics to the purchaser; money value of each of an input's characteristics equals the input's yield of the characteristic multiplied by the money value of one unit of the characteristic. Demand for an input is affected by the input's characteristics. The themes are derived from a neoclassical firm model, in which the arguments of the firm's production function are quantities of input characteristics used, and from duals of linear programming blending problems. These themes are used to evaluate corn grades.

Suggested Citation

  • George W. Ladd & Marvin B. Martin, 1976. "Prices and Demands for Input Characteristics," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(1), pages 21-30.
    • Handle: RePEc:oup:ajagec:v:58:y:1976:i:1:p:21-30.
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