Output elasticity

The partial production elasticity indicates approximately how much percent of the output ( production ) of a company or an economy changed when the use of a factor of production is increased by one percent. More precisely, it indicates how much changes in the production of a marginal change in factor inputs. The sum of the partial production elasticities gives the scale elasticity.

The partial production of elasticity is calculated by the following formula: with = partial production elasticity of the -th input = output and = quantity of the -th input.

• Production Theory
• Macroeconomic indicator