Cost minimization analysis of a running firm with economic policy

Dr Haradhan Mohajan ()

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper the Cobb-Douglas production function is operated in a firm for the analysis of the cost minimization policies. In an economic world, gain of profit depends on the efficient use of raw materials and use of various techniques of the cost minimization. A firm’s main target is to make maximum profit. Scientific based and efficient but minimum cost procedures will favor in this regard. To increase local and global demands, a firm of course develop production sector. An attempt has been taken in this study to minimize cost by considering four inputs, such as capital, labor, principal raw materials, and other inputs to form the economic model subject to a production constraint within the budget.

Keywords: Lagrange multiplier; minimum cost; Cobb-Douglas production function (search for similar items in EconPapers)
JEL-codes: C3 C51 C61 C67 (search for similar items in EconPapers)
Date: 2022-04-18, Revised 2022-05-04
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 (27)

Published in Annals of Spiru Haret University Economic Series 3.22(2022): pp. 317-337

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:114951

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