It is said that cost is derived from Production function. Do you agree substantiate ?
Answers
Explanation:
The production function describes a boundary or frontier representing the limit of output obtainable from each feasible combination of inputs.
The production function describes a boundary or frontier representing the limit of output obtainable from each feasible combination of inputs.Firms use the production function to determine how much output they should produce given the price of a good, and what combination of inputs they should use to produce given the price of capital and labor.
The production function describes a boundary or frontier representing the limit of output obtainable from each feasible combination of inputs.Firms use the production function to determine how much output they should produce given the price of a good, and what combination of inputs they should use to produce given the price of capital and labor.The production function also gives information about increasing or decreasing returns to scale and the marginal products of labor and capital.
Answer:
The cost function is a derived function since it is obtained from the production function. Total cost is the cost incurred to produce a given level of output in the short run by utilizing both the fixed and the variable factors. ... The long-run cost curves are formed by the short-run cost curves.
Explanation:
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