Compositum mixtum of one-factor production function

Daniil Yu. Cherevatskyi

Abstract


 

The paper is devoted to finding a convenient argument for the one-factor production function of a mine.

For construction of one-factor production functions it is offered to use composite goods (compositum mixtum), the value of which corresponds to the amount of costs, incurred by an enterprise during a year-long period of time. Taking into account peculiarities of coal mines, the study verifies an expedience of converting the composite good to the coal equivalent (conventional fuel), consumed by an enterprise in a technological process, Big Mac burgers, and the stuff number.

An attempt to use coal to build the production function of a mine as a composite good was not entirely successful. An experimental study of the dependence of coal production from actual costs of coal resources, carried out on a mathematical model of a mine, proved the inexpediency of such formalization, particularly due to the strong influence of non-mine (external) factors. Statistically significant, for example, were the efficiency of fuel use in power plants and the norm of coal for household needs.

The relevance and popularity of the ‘sandwich index’ is due to the fact that McDonald's is in most countries, and Big Mac itself contains so many food ingredients (bread, cheese, meat and vegetables) that can act as a kind of mold of the national economy. But the conducted research demonstrated that such a way of expressing the composite good for Ukrainian mines is not rational due to macroeconomic interventions (permanent increase of the minimum wage) in the microeconomics of an enterprise.

The most appropriate argument for the production function of the mine is the stuff number of an enterprise.

The rationality of Big Mac as the basis of the production function is demonstrated in the construction of the production function of world export coal markets.


Keywords


production function, composite good, Big Mac, coal, mine, production staff

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References


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DOI: https://doi.org/10.15407/econindustry2020.04.118

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