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Production Economics by Svend Rasmussen introduces readers to the fundamental theory behind production decisions and profit maximisation, drawing on the neoclassical framework of the firm. The book offers a detailed exploration of how and when firms should produce, extending conventional microeconomic treatments to address the practical challenges businesses face. It develops core themes such as optimising production under constraints, managing fixed inputs, and navigating the intricacies of time-dependent production choices. In this updated second edition, additional emphasis is placed on decision-making under risk and uncertainty. The text further delves into practical optimisation techniques, including the use of linear and mixed integer programming to derive supply functions. With its rigorous theoretical grounding and a clear focus on real-world application, Production Economics serves as a valuable resource for understanding the economic principles that underpin modern production processes.
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