Abstract
As in chapter 2, we present in this chapter the main functional forms in a basically instnunental manner, describing, in two main sections, the Cobb-Douglas and CES functional forms. For such functional forms, the input classic demand, profit and supply functions are obtained from the first and second-order conditions of the profit maximisation problem, as well as the input conditioned demand and cost functions. Moreover, the Hotelling and Shephard theorems are proved and the long-run average and marginal cost curves are obtained. In both functional forms, we perform a duality application at the end.
Chapter PDF
Recommended Reading
Gravelle, H., Rees, R.: Microeconomics, 3rd ed. Longman Group UK Limited 1994
Mas-Collel, A., Whinston, M. D., Green, J. R.: Microeconomic theory. New York: Oxford University Press 1995
Varian, H.: Microeconomic Analysis, 3rd ed. W.W. Norton & Company 1992
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 1999 Physica-Verlag Heidelberg
About this chapter
Cite this chapter
Coto-Millán, P. (1999). Main Forms of Production and Cost Functions. In: Utility and Production. Contributions to Economics. Physica, Heidelberg. https://doi.org/10.1007/978-3-662-00810-2_6
Download citation
DOI: https://doi.org/10.1007/978-3-662-00810-2_6
Publisher Name: Physica, Heidelberg
Print ISBN: 978-3-7908-1153-7
Online ISBN: 978-3-662-00810-2
eBook Packages: Springer Book Archive