Pregled bibliografske jedinice broj: 784698
Solving the production cost minimization problem with the Cobb – Douglas production function without the use of derivatives
Solving the production cost minimization problem with the Cobb – Douglas production function without the use of derivatives, 2014. (rukopis).
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Naslov
Solving the production cost minimization problem with the Cobb – Douglas production function without the use of derivatives
Autori
Kojić, Vedran ; Lukač, Zrinka
Izvornik
EFZG Working Paper Series/EFZG Serija članaka u nastajanju
Vrsta, podvrsta
Ostale vrste radova, rukopis
Godina
2014
Ključne riječi
global optimization ; Cobb-Douglas technology ; without derivatives ; arithmetic mean ; geometric mean
Sažetak
In this paper, we propose a new original method to solve the production cost minimization problem with Cobb-Douglas production function by using the weighted arithmetic-geometric-mean inequality (weighted AM-GM inequality). Instead of using derivatives or the Lagrange multiplier method, the minimum costs and global minimizers in the case of the Cobb-Douglas production function are derived in the direct way. The result is first derived for the case of two inputs and then generalized for the problem with n inputs.
Izvorni jezik
Engleski
Znanstvena područja
Ekonomija
