What is cost function in economics?

Question

Could someone tell me what is cost function in economics?

Answer 1

Cost function in Economics is defined as a function between the input price of various commodities which are used to produce an output of a certain price. So, this function gives the cost of producing that output from the input prices of those commodities.

Cost functions are used in Businesses, to determine the best investment keeping in mind the various long-term and short-term plans with the capital available.

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