A note on some prominent defective applications of neoclassical production theory

The neoclassical analysis of production, production runs, and production returns in the theory of the firm is clear and precise. Nevertheless, flawed versions have been used for policy prescriptions and both the analyses and prescriptions have been widely disseminated. Since these flawed analyses do not accurately describe the phenomena to be explained, policy prescriptions based thereupon may have and probably have had perverse results.