The economic roles and importance of small businesses in a nation, and proportional importance of the regional economy were examined in this paper, specially focused on Busan area, The effects of economies of scale in all sized companies were also app...
The economic roles and importance of small businesses in a nation, and proportional importance of the regional economy were examined in this paper, specially focused on Busan area, The effects of economies of scale in all sized companies were also appeared as a result of the inference based on the translog cost function in this paper. The Allen`s Partial Elasticities of Substitution, less than 1, was inelastic, And adaptations among factors of small businesses were more fast than those of big companies by the higher coefficient of the Allen`s Partial Elasticities of Substitution. The Price elasticities of factor demand was also inelastic, and small businesses were more sensitively responsible to the substitution among production factors than that of big companies As the results of substantial analyses, the difference of relatedness in production factors and the level of substitutions among factors at the price were differently appeared by the size of company. Therefore it is suggested that administrative policies were executed differently according to the company`s size.