Competitive manufacturing with fluctuating demand and diverse technology: Mathematical proofs and illuminations on industry output-flexibility

► Competitive manufacturing is modeled using the Oliver Williamson model. ► The Crew and Kleindorfer monopoly work is generalize to competitive manufacturing. ► John M. Clark's (1884-1963) contributions to economics are shown. ► Aranoff's output-flexibility indicator is discussed. ► Paper presents a deeper understanding of the social benefits of output-flexibility.