MATHEMATICAL ANALYSIS OF AN INDUSTRY WHEN COST OF PRINCIPAL RAW MATERIALS INCREASE: A NONLINEAR BUDGET CONSTRAINT ATTEMPT
MATHEMATICAL ANALYSIS OF AN INDUSTRY WHEN COST OF PRINCIPAL RAW MATERIALS INCREASE: A NONLINEAR BUDGET CONSTRAINT ATTEMPT

Summary/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.

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