Abstract
A cost function represents the minimum cost required to achieve a predetermined level of output given the prices for the factors of production. It is an essential tool of applied production analysis. A well-behaved technology can be reconstructed by observing the cost minimizing behavior of producers. We shall use this fundamental duality between the cost and production functions in Part II.
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© 2008 Springer-Verlag Berlin Heidelberg
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(2008). Cost Function. In: Production Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-75751-1_5
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DOI: https://doi.org/10.1007/978-3-540-75751-1_5
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-75750-4
Online ISBN: 978-3-540-75751-1
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