COST FUNTION NUMERICAL

[saumya singha]

Hello all,
there is one question on how to find a cost function for this particular input function

f(k,l)= min (k+2l, 2k+l)

given: w and v input prices resp. of k & l .

[Ashima]

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The author has deleted this message.

[Amit Goyal]

[L]

Shouldn't cost function be this:
C = q(v+w)/3

I think your answer will be valid if production function had been: f(k,l)= max((k+2l), (2k+l))

[Zen]

Not generally. Consider f(k,l)=2 and v (price per unit of k) =2 and w (price per unit of l) =0.5. Then your cost function doesn't give the right answer. In this case, we have a boundary optimum. For such an isoquant, we must plug in the 2 boundary points and the kink into the objective (cost function) function to find which point minimizes our cost function.

[leon]

Can you please explain how did you get C=q(w+v)/3?
Pardon my ignorance...

[L]

Yeah, you are correct. Thanks

[hoouin]