Asked by Kolby Finnie on May 06, 2024
Verified
The total cost function c(w1, w2, y)expresses the cost per unit of output as a function of input prices and output.
Total Cost Function
A mathematical representation of the total expenses involved in production, including both fixed and variable costs, as a function of output level.
Input Prices
The costs associated with the purchase of the factors of production, including wages for labor, prices for raw materials, and capital costs.
- Gain an understanding of the cost function's role in connection to input and output factors.
Verified Answer
DW
Derek WilsonMay 11, 2024
Final Answer :
False
Explanation :
The total cost function c(w1, w2, y) expresses the total cost of production as a function of input prices (w1, w2) and output level (y), not the cost per unit of output.
Learning Objectives
- Gain an understanding of the cost function's role in connection to input and output factors.