The purpose of this note is to show that a firm operating in perfectly competitive markets but facing costs of adjustment to its sole variable input (labour) may well prefer to operate in a region of the production function in which the output elasticity of labour is greater than unity (i.e....

The present progress in the information processing technology is having a drastic impact on the telecommunications industry and on many public networks by creating a separation between two components: on the one hand, the network made up of the infrastructures; on the other hand, the command...