Measurement and decomposition of flexibility of multi-output firms

摘要: Flexibility can be considered a crucial factor of competitive advantage, especially under conditions dynamically changing environments. Based on the classical microeconomic definition, flexibility is characterised as firm's ability to change output by sustaining its average costs. Using some recent concepts developed in production economics, this article proposes primal measure for multi-product firms. When decomposed, offers useful insights into possible sources flexibility, investigating role both scale and scope economies. This approach provides theoretical basis our investigation magnitude Polish agricultural sector.