Question

Cost functions are derived from ______ functions.

Consumption

Investment

Demand

Production​

Answer 1

Answer:

ᴛʜᴇ ᴄᴏꜱᴛ ꜰᴜɴᴄᴛɪᴏɴ ɪꜱ ᴀ ᴅᴇʀɪᴠᴇᴅ ꜰᴜɴᴄᴛɪᴏɴ ꜱɪɴᴄᴇ ɪᴛ ɪꜱ ᴏʙᴛᴀɪɴᴇᴅ ꜰʀᴏᴍ ᴛʜᴇ ᴘʀᴏᴅᴜᴄᴛɪᴏɴ ꜰᴜɴᴄᴛɪᴏɴ. ᴛᴏᴛᴀʟ ᴄᴏꜱᴛ ɪꜱ ᴛʜᴇ ᴄᴏꜱᴛ ɪɴᴄᴜʀʀᴇᴅ ᴛᴏ ᴘʀᴏᴅᴜᴄᴇ ᴀ ɢɪᴠᴇɴ ʟᴇᴠᴇʟ ᴏꜰ ᴏᴜᴛᴘᴜᴛ ɪɴ ᴛʜᴇ ꜱʜᴏʀᴛ ʀᴜɴ ʙʏ ᴜᴛɪʟɪᴢɪɴɢ ʙᴏᴛʜ ᴛʜᴇ ꜰɪxᴇᴅ ᴀɴᴅ ᴛʜᴇ ᴠᴀʀɪᴀʙʟᴇ ꜰᴀᴄᴛᴏʀꜱ. ... ᴛʜᴇ ʟᴏɴɢ-ʀᴜɴ ᴄᴏꜱᴛ ᴄᴜʀᴠᴇꜱ ᴀʀᴇ ꜰᴏʀᴍᴇᴅ ʙʏ ᴛʜᴇ ꜱʜᴏʀᴛ-ʀᴜɴ ᴄᴏꜱᴛ ᴄᴜʀᴠᴇꜱ.

⤵️Follow Me...

Answer 2

Answer:

The cost function is the derived function

since it is obtained from a production

function.Total cost is the cost incurred

to produce a given level of output

in a short run by utilising both fixed at

the variable factors.

I hope it helps you ☺️