The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Cost and Supply Curves

  • James C. Moore
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_357

Abstract

In microeconomic theory we usually suppose that an individual firm has a production technology which can be characterized by a production function \( \phi :{\mathrm{\Re}}_{+}^n\to {\mathrm{\Re}}_{+}; \) where the quantity ϕ : (υ), for \( \in {\mathrm{\Re}}_{+}^n, \) is interpreted as the maximum quantity of output which can be produced, given the vector of quantities of inputs, υ. Using the generic notation ‘x’ to denote the quantity of output, we also suppose that the firm’s revenue and cost are described by functions \( R:{\mathrm{\Re}}_{+}\times P\to {\mathrm{\Re}}_{+} \) and \( K:{\mathrm{\Re}}_{+}^n\times \Omega \to {\mathrm{\Re}}_{+}, \) where:

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • James C. Moore
    • 1
  1. 1.