THERE is a long tradition of theoretical analyses of production in management sciences and in business administration. While the classical production func- tion long played a dominant role in production theory of the firm, it became less and less acceptable after Leontief introduced his production function with limitational factors of production and constant coefficients and after Gutenberg advanced the hypothesis that production within the firm should be analyzed on the basis of individual pieces of machinery rather than on the basis of aggregate production functions for the legal entity as a whole. The so-called Gutenberg production function is a production function with limitational factors of production and coefficients of production that vary according to the intensity of production