A single-input production function is given by , where and denote output and the single input. The unit price of is . The cost is when no output is produced. Which one of the following statements is CORRECT?
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2 marks, −0.667MicroeconomicsCosts of productionCost minimisation and long-run input choiceModerateabout 2 min
IIT JAM 2026 Question 28: Costs of production
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A single-input production function is given by Q=L⁰·²⁵, where Q>0 and L>0 denote output and the single input. The unit price of L is w>0. The cost is C₁ when no output is produced. Which one of the following statements is CORRECT? (A) The cost function is concave and the production function is convex. (B) The cost function is convex and the production function is concave. (C) The cost function and the production function are both differentiable and convex. (D) The cost function and the production function are both differentiable and concave.
Also written as: A single-input production function is given by Q=L^(0.25), where Q>0 and L>0 denote output and the single input. The unit price of L is w>0. The cost is C_1 when no output is produced. Which one of the following statements is CORRECT?
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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.
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