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Explain about the term cost function.
Cost Functions
This function measures the minimum cost of producing a specified level of output for some fixed factor prices. Likewise this summarizes information regarding the technological choices obtainable to the firms. This turns out that the behavior of the cost function can tell us many about the nature of the firm’s technology. Firstly investigate the behavior of the cost function c(w, y) regarding its price and quantity arguments. After that, define a few related functions, that are the average and the marginal cost functions.
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