Summary: Let demand for a product be a random variable, which is independently and identically distributed in successive periods. Consider a firm producing this commodity subject to the following costs: the direct cost of production is proportional to output; the cost of changing the rate of...

Efficient Allocation of labour among a set of machines (say) operating under initially increasing and then decreasing returns is studied first for identical machines and then for the case when machines can be ranked by their productivity. Essentially it is a question of the number of machines to...