New research reveals cost-saving method for U.S. manufacturing industry.
The article analyzes how U.S. manufacturing firms can maximize output while minimizing costs. It introduces the concept of the indirect production function, which describes how firms choose inputs to produce output efficiently. The researchers show that the indirect production function is more aligned with real-world firm behavior than the cost function. By studying data from previous research, they provide evidence supporting the use of the indirect production function in analyzing production structures.