Abstract
In the April 1976 issue of this Journal Mirakhor suggested that an efficient allocation of resources is possible for a profit maximizing monopolist operating under regulatory and union constraints. This analysis may be extended by assuming the monopolist augments the factors of production by selecting technologies from a closed, exogenously determined, set of techniques. Under this additional constraint, efficient resource allocation implies that factor augmentation is solely determined by relative input costs, ceteris paribus. It can also be demonstrated that the innovational constraint accentuates the incentive for labor augmentation when the regulatory constraint is active, or it accentuates the incentive for capital augmentation when the union constraint is active.
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