Question
Derive cost function for the Cobb-Douglas technology and prove the following properties of cost function c(w,y). (1) Nondecreasing in input price. (2) Homogeneous of degree
Derive cost function for the Cobb-Douglas technology and prove the following properties of cost functionc(w,y).
(1) Nondecreasing in input price.
(2) Homogeneous of degree one in input price.
(3) Concave function in input price.
(4) Shephard's lemma.
There is no other details given. Only these details are in the question.
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Economics of Money Banking and Financial Markets
Authors: Frederic S. Mishkin
12th edition
134733821, 134733827, 9780134734507 , 978-0134733821
