Re: Doubts

Posted by Rautparul on Jan 28, 2017; 5:24pm
URL: http://discussion-forum.276.s1.nabble.com/Doubts-tp7603095p7603121.html

This is a very lame doubt. But I am stuck with basics:

True/False
A competitive, cost-minimizing rm has the production function f(x; y) = x + 2y and uses
positive amounts of both inputs. If the price of x doubles and the price of y triples, then the cost
of production will more than double

Apparently, Answer is False.

I am not getting how to derive cost function from production function. Is there a direct way?