生产函数决定成本函数英文版.pptVIP

Choosing a Production Process Minimizing cost important part of maximizing profit Isocost allow to keep track of costs Set of all baskets of inputs that can be employed at a given cost Slope: -PL/PK Minimizing cost and maximizing output requires firm choose tangency point between an isocost and an isoquant Means that MRTS = PL/PK Tangencies lie along curve called the firm’s expansion path * * 第二十八页，共三十八页。 EXHIBIT 6.9 Cost Minimization * * 第二十九页，共三十八页。 Long-Run Cost Curves Information needed Production function or isoquants Input prices Firm’s long-run total cost Cost of producing a given amou