Virksomhedsøkonomi (VØ el. EØ)

Construction of cost function

15. september 2018 af Hansjans (Slettet) - Niveau: Universitet/Videregående

Construction of a cost-function Ralph must select the best combination of four factors of production denoted, z1, z2, z3 and z4 (all of them are greater or equal to zero), to produce q units of output. technical requirements are defined by the following constraints. z1 + z2 <=q, z3 + z4 <=q, z <=5 and z3 <= 6. factor prices are 1, 2, 3 and 4 per unit (respectively) a) determine the cost curve for 0 <= q <= 10 and plot the cost curve: How do you interpret the shadow price b) Repeat for a particular short-run setting z1 (sign above z) = 3 Thanks for you help in advance


Skriv et svar til: Construction of cost function

Du skal være logget ind, for at skrive et svar til dette spørgsmål. Klik her for at logge ind.
Har du ikke en bruger på Studieportalen.dk? Klik her for at oprette en bruger.