# Author: Abhishek Kumar Sadhu

## COST FUNCTION ESTIMATION

COST FUNCTION AND ITS DETERMINANTS Cost function expresses the relationship between cost and its determinants such as the size of plant, level of
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## PRODUCTION FUNCTION ESTIMATION

In the process of decision-making, a manager should understand clearly the relationship between the inputs and output on one hand and output and
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## APPLICATION OF COST ANALYSIS

In the previous posts we discussed total, marginal, and average cost curves for both short run and long run. The relationships between these
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## SHORT-RUN COST FUNCTION

In previous post cost concept we distinguished between the short run and the long run. We also distinguished between fixed costs and variable
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## COST CONCEPT AND ANALYSIS

The analysis of cost is important in the study of managerial economics because it provides a basis for two important decisions made by
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## OPTIMAL COMBINATION OF INPUTS

In the previous post we  learned that any desired level of output can be produced using a number of different combinations of inputs.
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## PRODUCTION FUNCTION WITH TWO VARIABLE INPUTS

Now we turn to the case of production where two inputs (say capital and labour) are variable. Although, we restrict our analysis to
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## PRODUCTION FUNCTION

Production process involves the transformation of inputs into output. The inputs could be land, labour, capital, entrepreneurship etc. and the output could be
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## CROSS-PRICE ELASTICITY

The sales volume of one product may be influenced by the price of either substitute or complementary products. Cross-price elasticity of demand provides
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## INCOME ELASTICITY OF DEMAND

The income elasticity of demand measures the responsiveness of sales to changes in income, ceteris paribus. It is defined as the percentage change
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## DETERMINANTS OF PRICE ELASTICITY

Price elasticities can be estimated for many goods and services; Table-3 provides some examples. The short-run elasticities reflect periods of time that are
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## PRICE ELASTICITY OF DEMAND

ELASTICITY We studied that when price falls, quantity demanded would increase. While we know this qualitative effect exists for most goods and services,
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## THE DETERMINANTS OF DEMAND

Many forces influence our decisions regarding the bundle of goods and services we choose to purchase. It is important for managers to understand
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