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Questions › IIT JAM › IIT JAM 2025 › Q20
2 marks, −0.667Microeconomics › Costs of production › Cost minimisation and long-run input choiceHardabout 2 min

IIT JAM 2025 Question 20: Costs of production

Consider a firm that produces a single good using labour and capital. Let CCC, QQQ, LLL, KKK, www, rrr and ppp denote cost of production, level of output, labour, capital, wage rate, price of capital and the price of output, respectively. An example of the cost function for this firm is ________.

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Plain-text version

Consider a firm that produces a single good using labour and capital. Let C, Q, L, K, w, r and p denote cost of production, level of output, labour, capital, wage rate, price of capital and the price of output, respectively. An example of the cost function for this firm is. (A) C=wL+rK (B) C=min {wL,rK} (C) C=pQ/([wL+rK]) (D) C=Q√(r w)

Costs of production has come up 83 times in 7 exams since 2006.

What this question tests

This question is on Cost minimisation and long-run input choice, part of Costs of production in Microeconomics.

Choosing inputs to produce a given output at least cost, including across several plants.

TestStop has 22 past-paper questions on this subtopic; the nearest in year are below.

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Question from the IIT JAM 2025 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.