Theory of Production and Cost
7. Cost Minimization, Example of Cost functions (IES 2020), Properties of Cost function, Returns to Scale (IES 2018)
Topic discussed:
Maximization of Output subject to the Cost Constraint
Minimization of Cost for a given Level of Output
Optimal Expansion Path
Slope of an Expansion Path
Properties of Cost Functions
Cost Minimization
Past Year Ques Discussed:
Q4, IES 2020
Q6(b), IES 2018
8. Cost function and Duality (IES 2019), U-shaped AC curve (IES 2010), Derivation of LTC, LAC and LMC curves
Topic discussed:
Duality of Production and Cost Functions
Deriving the Long Run Total Cost Function and LAC Curve
Derivation of Long Run Marginal Cost
Past Year Ques Discussed:
Q12, IES 2010
Q1(b), IES 2010
Q1(b), IES 2019
