Output Maximisation and Cost Minimisation | Production Theory
In this article we will discuss about:- 1. Conditions for Maximum Output Subject to a Cost Constraint 2. Conditions for Minimum Cost Subject to an Output Constraint. Conditions for Maximum Output Subject to a Cost Constraint: Let us suppose that the production function of the firm is: q = f(x, y) [eqn. (8.21)] where q is the quantity of output [...]