Beta Phase:
Square45 is currently in beta testing. Expect some features or content to be incomplete or missing.
45
English
Français
العربية
Deutsch
🏠
/
Economics
/
Producer Theory
/
Cost Function Minimization
Cost Function Minimization
The core objective of the theory: finding the minimum cost
C
C
C
required to achieve a target output
Q
Q
Q
. This is solved by minimizing
C
=
w
L
+
r
K
C = wL + rK
C
=
w
L
+
rK
subject to
Q
=
f
(
K
,
L
)
Q = f(K, L)
Q
=
f
(
K
,
L
)
.