If we have the Leontief production function with two inputs and , the associated total cost function will be of the
Tap an option to check your answer.
1 mark, −0.33MicroeconomicsCosts of productionCost minimisation and long-run input choiceModerateabout 1 min
UoH 2021 Question 2: Costs of production
Answer and worked solution
Checking your account…
Plain-text version
If we have the Leontief production function y = min {ax₁, bx₂} with two inputs x₁ and x₂, the associated total cost function will be of the (A) Leontief function form. (B) Cobb-Douglas function form. (C) linear form. (D) non-linear form.
Also written as: If we have the Leontief production function y = min {ax_1, bx_2} with two inputs x_1 and x_2, the associated total cost function will be of the
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.
Similar questions from other papers
- A zero economic profit means that the firm is earning a
- In terms of the general relations among total cost, average cost and marginal cost, which of the following statements is/are FALSE?
- 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…
- Which of the following level of utilization is considered as "Normal" by a firm?
- If the marginal cost of a firm is given as the function of output, C′(Q) = 2 e^(0.2Q) and if the fixed cost is 75, find the total cost function.
Question from the UoH 2021 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.