qwertyunal
New member
- Joined
- Nov 13, 2014
- Messages
- 1
P1=Price of Input 1
P2=Price of Input 2
Q= Total Production Level
f(P1,P2, Q) = (P1 + P2) * (Q^0.5)
So we know that Cost function is Concave, Non-decreasing, Continuous and Homogeneous in Input Prices(P1,P2)
Is the above function Concave in Input Prices?
Can it be a cost function?
P2=Price of Input 2
Q= Total Production Level
f(P1,P2, Q) = (P1 + P2) * (Q^0.5)
So we know that Cost function is Concave, Non-decreasing, Continuous and Homogeneous in Input Prices(P1,P2)
Is the above function Concave in Input Prices?
Can it be a cost function?