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Size and structure of return to scale in revenue function and cost function
[Velikost a struktura efektu z rozsahu ve výnosové a nákladové funkci]

Author

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  • František Střeleček

    (Katedra účetnictví a financí, Ekonomická fakulta, Jihočeská univerzita v Českých Budějovicích, Studentská 13, 370 05 České Budějovice, Česká republika)

  • Jana Lososová

    (Katedra účetnictví a financí, Ekonomická fakulta, Jihočeská univerzita v Českých Budějovicích, Studentská 13, 370 05 České Budějovice, Česká republika)

  • Radek Zdeněk

    (Katedra účetnictví a financí, Ekonomická fakulta, Jihočeská univerzita v Českých Budějovicích, Studentská 13, 370 05 České Budějovice, Česká republika)

Abstract

Common revenue function expressing the relation of the profit/loss to costs is composed analytically so that it is not instructive enough to analyse the return to scale based on a comparison of results in two different periods. This function is influenced by fixed cost and its production utilization, change of profit due to an extensive increase of output and variable cost's size and efficiency. Each stage of the revenue function has specified relation of the above mentioned cost items. According to their relation the economy in each stage of the revenue function is derived. It is possible to use these analyses to optimize output regarding the profit/loss as well as to assess the economy related to any change of the profit volume. Supported by the Ministry of Education, Youth and Sports of the Czech Republic (Project No. MSM 6007665806).

Suggested Citation

  • František Střeleček & Jana Lososová & Radek Zdeněk, 2010. "Size and structure of return to scale in revenue function and cost function [Velikost a struktura efektu z rozsahu ve výnosové a nákladové funkci]," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 58(6), pages 491-502.
    • Handle: RePEc:mup:actaun:actaun_2010058060491
    DOI: 10.11118/actaun201058060491
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    References listed on IDEAS

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