THE USE OF COBB-DOUGLAS PRODUCTION FUNCTION IN MODELING PRODUCTION PROCESSES

Several alternative economic approaches to the study of organization are discussed in the literature: the neoclassical theory, the theory of transaction costs (the theory of specific assets), the theory of incomplete contracts (the theory of property rights), and the Agency theory (the theory of incentives). Recently, there have been approaches at the intersection of Economics and management: resource theory, knowledge theory, strategic theory, entrepreneurial theory; in the framework of sociology: network theory, the theory of resource dependence, the theory of institutional isomorphism, the theory of situational choice, the theory of strategic choice. The article deals with the basic model of neoclassical theory. The advantage of the neoclassical theory is that it emphasizes the role of technology in General and economies of scale in particular as factors that influence the size of production, turnover of organizations. Within the framework of the considered approach, a certain macrostructure is determined that carries out the costs of economic resources: fixed assets, the number of employees that affect the turnover of organizations. The task of rational economic management, which meets the Udmurt Republic, is to determine the forecast of turnover of organizations with the given resources and to calculate the necessary for its value of fixed assets, the number of employees.