Problem of interest for several reasons in cost minimization, Microeconomics

Assignment Help:

What are the problems of interest for several reasons in cost minimization?

Cost Minimization:

A significant implication of the firm choosing a profit-maximizing production plan is which there is no method to produce similar amounts of outputs at a lower total input cost. Therefore, cost minimization is an essential condition for profit maximization. Such observation inspires us to an independent study of the firm’s cost minimization. The problem is of interest for several purposes. First, this leads us to a number of results and constructions which are technically very helpful. Second, as extensive as the firm is a price taker into its input market, the results flowing through the cost minimization carry on to be valid whether or not the output market is competitive and therefore whether or not the firm takes the output price as specified as. Third, while the production set demonstrates nondecreasing returns to scale, then the cost function and optimizing vectors of the cost minimization problem that keep the levels of outputs fixed, those are better behaved than the profit function.


Related Discussions:- Problem of interest for several reasons in cost minimization

Theory of supply, how to make attractive assignment on theory of supply

how to make attractive assignment on theory of supply

Role of marginal propensity to consume in accounting for gro, how can we br...

how can we bring in the marginal propensity to consume

3, . Crumble Corporation produces cookies. Here is the relationship betwee...

. Crumble Corporation produces cookies. Here is the relationship between the number of workers and output (in dozens of cookies) in a given day: Workers Output Marginal Product

Income, trend and structure of national income in nigeria

trend and structure of national income in nigeria

Marginal rate of technical substitution and productivity, MRTS and Marginal...

MRTS and Marginal Productivity The change in output from change in labor equals:                     The change in output from change in capital equals

Credit squeeze, Credit Squeeze:At times private banks become reluctant to i...

Credit Squeeze:At times private banks become reluctant to issue new credit andloans, frequently because they are worried about risk of default by borrowers. This is common at the t

Monopolistic competition and oligopoly, Monopolistic Competition and Oligop...

Monopolistic Competition and Oligopoly: It was recognized that most industries exhibit the features of monopolistic competition in real-life. However, it must be pointed out t

Economic reforms and industrial growth, Economic Reforms and Industrial Gro...

Economic Reforms and Industrial Growth Economic reforms were mainly intended to remove obstacles so that investment in industry may be accelerated. With this end in view, indu

Visit to village panchayat for agriculture based project., any village panc...

any village panchayat in west bengal and get information for doing a project.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd