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  • Also Minimizes Costs at Prices Be A Costminimizing Bundle at Prices by A Positive Scalar Bundle, And, Thus, Costs Must Rise by Exactly A Factor of

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    2) We show that if x is the cost-minimizing bundle at prices w, then x also minimizes costs at prices tw. Suppose not, and let x' be a costminimizing bundle at tw so that twx' < twx. But this inequality implies wx' < wx, which contradicts the definition of x. Hence, multiplying

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    2) We show that if x is the cost-minimizing bundle at prices w, then x also minimizes costs at prices tw. Suppose not, and let x' be a costminimizing bundle at tw so that twx' < twx. But this inequality implies wx' < wx, which contradicts the definition of x. Hence, multiplying

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    6 views1 page

    Also Minimizes Costs at Prices Be A Costminimizing Bundle at Prices by A Positive Scalar Bundle, And, Thus, Costs Must Rise by Exactly A Factor of

    Uploaded by

    banks
    2) We show that if x is the cost-minimizing bundle at prices w, then x also minimizes costs at prices tw. Suppose not, and let x' be a costminimizing bundle at tw so that twx' < twx. But this inequality implies wx' < wx, which contradicts the definition of x. Hence, multiplying

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    of 1

    2) We show that if x is the cost-minimizing bundle at prices w, then x

    also minimizes costs at prices tw. Suppose not, and let x' be a costminimizing
    bundle at tw so that twx' < twx. But this inequality implies
    wx' < wx, which contradicts the definition of x. Hence, multiplying factor
    prices by a positive scalar t does not change the composition of a costminimizing
    bundle, and, thus, costs must rise by exactly a factor of t:
    c(tw, y) = twx = tc(w, y).

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