lecture3productiontheoryIII(微观经济学(浙大-叶剑亮)).pptVIP

lecture3 for Chu Kechen Honors College Advanced Microeconomics(LECTURE 3:production theory III) Ye Jianliang Cost Minimization Content: Definitions Properties of cost function WACM Some forms of cost functions 1.Definitions One production, cost function is The optimal solution x(w,q), is the conditional factor demand function. Question1:calculate the conditional factor demand function of C-D tech. and CES tech. 1.Definitions Recall the cost minimization condition, let x0, then set Lagrangian: We got: see the fig.