ABSTRACT
The cost of producing the quantity x of a given good in a unit of time equals the product of the quantities of the needed factors of production (factors, for short) and their prices. Let us assume that the production of the quantity x requires n factors in the quantities v 1, v 2,…, v 1. If the dependence of the amounts of factors on the quantity x of the output is denoted by https://www.w3.org/1998/Math/MathML"> v i ( x ) ( i = 1 , 2 , … , n ) , https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9781315016443/8af9975b-172a-4dc0-9a92-f13e7dc9f7fb/content/math_133_B.tif" xmlns:xlink="https://www.w3.org/1999/xlink"/> and factor prices by q 1 (i = 1,2,…, n), then the total costs of producing the quantity x is defined as: https://www.w3.org/1998/Math/MathML"> C = ∑ i = 1 n q i . v i ( x ) . https://s3-euw1-ap-pe-df-pch-content-public-p.s3.eu-west-1.amazonaws.com/9781315016443/8af9975b-172a-4dc0-9a92-f13e7dc9f7fb/content/math_134_B.tif" xmlns:xlink="https://www.w3.org/1999/xlink"/>
