【正文】
Advanced Microeconomics (LECTURE 3:production theory III) Ye Jianliang lecture3 for Chu Kechen Honors College Cost Minimization ? Content: ? Definitions ? Properties of cost function ? WACM ? Some forms of cost functions lecture3 for Chu Kechen Honors College ? One production, cost function is ? The optimal solution x(w,q), is the conditional factor demand function. ? Question1:calculate the conditional factor demand function of CD tech. and CES tech. 0( , ) m in . . ( )xcqs t f x q????w w xlecture3 for Chu Kechen Honors College ? Recall the cost minimization condition, let x0, then set Lagrangian: ? We got: see the fig. ? What is? ( , ) ( ( ) )fq??? ? ?x w x xL()f? ?? ??wx?lecture3 for