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Mathematical Analysis of an Industry When Cost of Principal Raw Materials Increase: A Nonlinear Budget Constraint Attempt

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  • Mohajan, Devajit

Abstract

During profit maximization procedure an industry faces various difficulties; and increase of cost of principal raw material is one of them that happen frequently. In this study an attempt is taken to discuss economic effects on various inputs when the cost of principal raw material is increased. The economic sensitivity analysis of various inputs on the basis of principal raw material is an essential step for an industry when the industry is on the profit maximization track. This article deals with four variable inputs, such as capital, labor, principal raw materials, and irregular inputs of an industry, where nonlinear budget constraint is considered. This study stresses on mathematical formalities to show the economic predictions scientifically.

Suggested Citation

  • Mohajan, Devajit, 2023. "Mathematical Analysis of an Industry When Cost of Principal Raw Materials Increase: A Nonlinear Budget Constraint Attempt," MPRA Paper 118933, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:118933
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    References listed on IDEAS

    as
    1. Jamal Nazrul Islam & Haradhan Kumar Mohajan & Pahlaj Moolio, 2010. "Utility Maximization Subject to Multiple Constraints," Indus Journal of Management & Social Science (IJMSS), Department of Business Administration, vol. 4(1), pages 15-29, December.
    2. ROY, Lia & MOLLA, Rashed & MOHAJAN, Haradhan Kumar, 2021. "Cost Minimization Is Essential For The Sustainable Development Of An Industry: A Mathematical Economic Model Approach," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 21(1), pages 37-71.
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    4. Hossain, Fazlee & Das, Sabuj, 2015. "The Rogers-Ramanujan Identities," MPRA Paper 83043, University Library of Munich, Germany, revised 28 Mar 2015.
    5. Mohajan, Devajit & Mohajan, Haradhan, 2022. "Importance of Total Coupon in Utility Maximization: A Sensitivity Analysis," MPRA Paper 115553, University Library of Munich, Germany, revised 17 Sep 2022.
    6. Jamal Nazrul Islam & Haradhan Kumar Mohajan & Pahlaj Moolio, 2009. "Political Economy and Social Welfare with Voting Procedure," KASBIT Business Journals (KBJ), Khadim Ali Shah Bukhari Institute of Technology (KASBIT), vol. 2, pages 42-66, December.
    7. Mohajan, Haradhan, 2013. "Friedmann, Robertson-Walker (FRW) Models in Cosmology," MPRA Paper 52402, University Library of Munich, Germany, revised 20 Dec 2013.
    8. Jamal NazrulIslam & Haradhan Kumar Mohajan & Pahlaj Moolio, 2011. "Output Maximization Subject to a Nonlinear Constraint," KASBIT Business Journals (KBJ), Khadim Ali Shah Bukhari Institute of Technology (KASBIT), vol. 4, pages 116-128, December.
    9. Mohajan, Haradhan, 2016. "A Comprehensive Analysis of Knowledge Management Cycles," MPRA Paper 83088, University Library of Munich, Germany, revised 16 Nov 2016.
    10. MOHAJAN, Haradhan Kumar, 2021. "Estimation Of Cost Minimization Of Garments Sector By Cobb-Douglas Production Function: Bangladesh Perspective," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 21(2), pages 247-267.
    11. Mohajan, Haradhan, 2013. "Economic Development of Bangladesh," MPRA Paper 50663, University Library of Munich, Germany, revised 23 Sep 2013.
    12. Mohajan, Devajit & Mohajan, Haradhan, 2022. "Utility maximization analysis of an emerging firm: a bordered Hessian approach," MPRA Paper 115838, University Library of Munich, Germany, revised 25 Sep 2022.
    13. B. Curtis Eaton & Richard G. Lipsey, 1975. "The Principle of Minimum Differentiation Reconsidered: Some New Developments in the Theory of Spatial Competition," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 42(1), pages 27-49.
    14. Mohajan, Haradhan, 2013. "Ethiopia: A socio-economic study," MPRA Paper 52277, University Library of Munich, Germany, revised 10 Sep 2013.
    15. Mohajan, Devajit & Mohajan, Haradhan, 2023. "Sensitivity Analysis of Inputs of an Organization: A Profit Maximization Exploration," MPRA Paper 117121, University Library of Munich, Germany, revised 12 Mar 2023.
    16. Islam, Jamal & Mohajan, Haradhan & Moolio, Pahlaj, 2010. "Median voter model cannot solve all the problems of voting system," MPRA Paper 50696, University Library of Munich, Germany, revised 22 Feb 2011.
    17. Mahbubur RAHMAN & Haradhan Kumar MOHAJAN, 2019. "Rohingya-The Stateless Community Becoming the Lost Generation," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 8(2), pages 24-36, June.
    18. Mohajan, Devajit & Mohajan, Haradhan, 2023. "A Study on Nonlinear Budget Constraint of a Local Industrial Firm of Bangladesh: A Profit Maximization Investigation," MPRA Paper 117324, University Library of Munich, Germany, revised 27 Mar 2023.
    19. Mohajan, Haradhan, 2021. "Product Maximization Techniques of a Factory of Bangladesh: A Sustainable Procedure," MPRA Paper 108094, University Library of Munich, Germany, revised 15 May 2021.
    20. Haradhan Kumar MOHAJAN, 2018. "Qualitative research methodology in social sciences and related subjects," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 7(1), pages 23-48, March.
    21. Mohajan, Devagit & Mohajan, Haradhan, 2022. "Profit Maximization Strategy in an Industry: A Sustainable Procedure," MPRA Paper 114675, University Library of Munich, Germany, revised 21 Jun 2022.
    22. Mohajan, Devajit & Mohajan, Haradhan, 2023. "A Study on Body Fat Percentage for Physical Fitness and Prevention of Obesity: A Two Compartment Model," MPRA Paper 117158, University Library of Munich, Germany, revised Feb 2023.
    23. Mohajan, Devajit & Mohajan, Haradhan, 2023. "Sensitivity Analysis for Profit Maximization with Respect to Per Unit Cost of Subsidiary Raw Materials," MPRA Paper 116538, University Library of Munich, Germany, revised 10 Jan 2023.
    24. Mohajan, Haradhan, 2017. "Optimization Models in Mathematical Economics," MPRA Paper 83185, University Library of Munich, Germany, revised 11 Apr 2017.
    25. Mohajan, Haradhan, 2014. "Chinese Sulphur Dioxide Emissions and Local Environment Pollution," MPRA Paper 55953, University Library of Munich, Germany, revised 06 Apr 2014.
    26. Michael Carter, 2001. "Foundations of Mathematical Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262531925, April.
    27. MOHAJAN, Haradhan Kumar, 2017. "Two Criteria For Good Measurements In Research: Validity And Reliability," Annals of Spiru Haret University, Economic Series, Universitatea Spiru Haret, vol. 17(4), pages 59-82.
    28. Pahlaj Moolio & Jamal Nazrul Islam & Haradhan Kumar Mohajan, 2009. "Output Maximization of an Agency," Indus Journal of Management & Social Science (IJMSS), Department of Business Administration, vol. 3(1), pages 39-51, June.
    29. Harald Wiese, 2021. "Cost minimization and profit maximization," Springer Books, in: Advanced Microeconomics, chapter 0, pages 231-260, Springer.
    30. Hossain, Fazlee & Das, Sabuj & Mohajan, Haradhan, 2014. "Bingmann-Lovejoy-Osburn’s generating function in the overpartitions," MPRA Paper 83044, University Library of Munich, Germany, revised 01 Aug 2014.
    31. Mohajan, Haradhan, 2016. "An Analysis of Knowledge Management for the Development of Global Health," MPRA Paper 82959, University Library of Munich, Germany, revised 16 Aug 2016.
    32. Mohajan, Haradhan, 2021. "Utility Maximization of Bangladeshi Consumers within Their Budget: A Mathematical Procedure," MPRA Paper 109993, University Library of Munich, Germany, revised 20 Jul 2021.
    33. Mohajan, Haradhan, 2020. "Quantitative Research: A Successful Investigation in Natural and Social Sciences," MPRA Paper 105149, University Library of Munich, Germany, revised 15 Nov 2020.
    34. Mohajan, Devajit & Mohajan, Haradhan, 2023. "Abdominal Elephantiasis: An Obstructive Disease Due to Extreme Obesity," MPRA Paper 117822, University Library of Munich, Germany, revised 04 May 2023.
    35. Mohajan, Devajit & Mohajan, Haradhan, 2022. "Sensitivity Analysis among Commodities and Coupons during Utility Maximization," MPRA Paper 115554, University Library of Munich, Germany, revised 04 Oct 2022.
    36. Mohajan, Haradhan, 2022. "Cost minimization analysis of a running firm with economic policy," MPRA Paper 114951, University Library of Munich, Germany, revised 04 May 2022.
    37. Mohajan, Haradhan, 2015. "Sustainable Development Policy of Global Economy," MPRA Paper 82815, University Library of Munich, Germany, revised 30 Mar 2015.
    38. repec:ksb:journl:v:2:y:2009:i:1:p:42-66 is not listed on IDEAS
    39. Mohajan, Devajit & Mohajan, Haradhan, 2023. "Obesity and Its Related Diseases: A New Escalating Alarming in Global Health," MPRA Paper 116797, University Library of Munich, Germany, revised 05 Feb 2023.
    40. Michael Carter, 2001. "Foundations of Mathematical Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262032899, April.
    41. Bhattacharjee, Nil & Das, Sabuj & Mohajan, Haradhan, 2014. "Andrews-Garvan-Liang’s Spt-crank for Marked Overpartitions," MPRA Paper 83047, University Library of Munich, Germany, revised 19 Oct 2014.
    42. Mohajan, Haradhan, 2022. "Maximum profit ensured for industry sustainability," MPRA Paper 114801, University Library of Munich, Germany, revised 15 May 2022.
    43. Mohajan, Devajit, 2023. "Ponderal Index: An Important Anthropometric Indicator for Physical Growth," MPRA Paper 118334, University Library of Munich, Germany, revised 13 Feb 2023.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Profit maximization; nonlinear budget constraint; principal raw material;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D6 - Microeconomics - - Welfare Economics
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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