Mathematical Analysis of an Industry When Cost of Principal Raw Materials Increase: A Nonlinear Budget Constraint Attempt

Mohajan, Devajit (2023): Mathematical Analysis of an Industry When Cost of Principal Raw Materials Increase: A Nonlinear Budget Constraint Attempt. Published in: Annals of Spiru Haret University. Economic Series , Vol. 23, No. 3 (21 October 2023): pp. 223-248.

Abstract

During profit maximization procedure an industry faces various difficulties; and increase of cost of principal raw material is one of them that happen frequently. In this study an attempt is taken to discuss economic effects on various inputs when the cost of principal raw material is increased. The economic sensitivity analysis of various inputs on the basis of principal raw material is an essential step for an industry when the industry is on the profit maximization track. This article deals with four variable inputs, such as capital, labor, principal raw materials, and irregular inputs of an industry, where nonlinear budget constraint is considered. This study stresses on mathematical formalities to show the economic predictions scientifically.

• Item Type: MPRA Paper
• Language: English
• Keywords: Profit maximization, nonlinear budget constraint, principal raw material
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C32 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes ; State Space Models; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C53 - Forecasting and Prediction Methods ; Simulation Methods; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C67 - Input-Output Models; D - Microeconomics > D6 - Welfare Economics; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs

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