Estimation of Cost Minimization of Garments Sector by Cobb-Douglas Production Function: Bangladesh Perspective

Dr Haradhan Mohajan ()

MPRA Paper from University Library of Munich, Germany

Abstract: The Cobb-Douglas production function in the field of economics has a long history. In mathematical economics, it is used to find the functional relationship between the economic inputs and potential outputs. This study applies the Cobb-Douglas production function to predict the cost minimization policies of a running garments industry of Bangladesh. In the study the effects of the variation rate of capital, labor and other inputs with returns to scale in the garments industry of Bangladesh are examined. In multivariable calculus, the method of Lagrange multiplier is a very useful and powerful technique. In this study interpretation of Lagrange multiplier is given to predict the cost minimization policy using Cobb-Douglas production function. An attempt has been taken here to show the production of garments in minimum cost by using statistical analysis.

Keywords: Production function; Cobb-Douglas model; cost minimization; returns to scale (search for similar items in EconPapers)
JEL-codes: C3 C5 C61 (search for similar items in EconPapers)
Date: 2021-02-11, Revised 2021-06-15
New Economics Papers: this item is included in nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

Published in Annals of Spiru Haret University Economic Series 2.20(2021): pp. 267-299

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https://mpra.ub.uni-muenchen.de/108565/1/MPRA_paper_108565.pdf original version (application/pdf)

Related works:
Journal Article: ESTIMATION OF COST MINIMIZATION OF GARMENTS SECTOR BY COBB-DOUGLAS PRODUCTION FUNCTION: BANGLADESH PERSPECTIVE (2021)
Journal Article: ESTIMATION OF COST MINIMIZATION OF GARMENTS SECTOR BY COBB-DOUGLAS PRODUCTION FUNCTION: BANGLADESH PERSPECTIVE (2021)
Journal Article: ESTIMATION OF COST MINIMIZATION OF GARMENTS SECTOR BY COBB-DOUGLAS PRODUCTION FUNCTION: BANGLADESH PERSPECTIVE (2021)
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