Question

Define cost function.

Answer 1

Definition: The cost function is a function of input prices and output quantity. Its value is the cost of making that output given those input prices.

A common form:

c(w1, w2, y) is the cost of making output quantity y using inputs that cost w1 and w2 per unit.

Terms related to Cost Function:

The Cost CurveMarginal CostSunk CostsAbout.Com Resources on Cost Function:How to Understand and Calculate Cost MeasuresAdsEco for Class 11 & 12www.meritnation.com/Economics-11-12Economics Papers, Videos, Notes, Ask Economics Experts, Join Free!EconomicsDefinitionLiving CostProfitProduct CostWhat are Opportunity Costs?Marginal Revenue and Marginal Cost Practice QuestionWriting a Term Paper? Here are a few starting points for research on Cost Function:

Journal Articles on Cost Function:

A Cost Function Approach to the Measurement of Elasticities of Factor Demand and Elasticities of SubstitutionFlexible Cost Functions for Multiproduct Firms