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Prove that if production function f is nice then total cost function C(v,w,q) is nondecreasing in v. Nice means f is increasing and twice differentiable
Prove that if production function f is "nice" then total cost function C(v,w,q) is nondecreasing in v.
Nice means
- f is increasing and twice differentiable in all inputs
- isoquant curve of l,k is decreasing and convex
- isoquant never touches the axes
- isoquant curve is differentiable
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