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Duality Inproduction and Cost Theory Homework Help

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Know About the Concept of Duality in Production and Cost Theory with Details!

The aim of the organization is to face the challenges of the competitive input market and the technological possibilities. It should always aim at reducing the cost by producing quality output and making the correct decision while choosing the data. To gain the benefits, you can consider the minimum price as the result of both the input cost and the output produced. Hence, the cost functions play a significant role in the theory of production.

The students struggling with the concept due to any reason can trust our website. We focus on the improvement of the students and give him enough knowledge about the subject. It will help them to excel in the future. Hence, you can avail our services of duality in production and cost theory assignment help if you need assistance in that.

Meaning of Duality

The duality theory explains the relationship between the cost function and product function. It states that there is a connection between these two under certain circumstances. The duality in production and cost theory homework help states that you can use both the function for understanding the production functions through observation. It also states that the duality between them is identical to the duality between utility and expenditure function. It is also isomorphic.

The Function of Dual Cost

You can measure the economic behavior of the firms by using the principles of profit and cost maximization. Hence, in the duality in production and cost theory assignment help, you can find the principle of duality explained elaborately. However, the law suggests that you can conclude that there is a dual problem in the constrained profit maximization problem while obtaining the constrained minimization of cost.

Data Properties used in Estimation

The methodology for estimating the cost and production is as follows.

  • The cost of manufacturing of output is the combination of cost of capital and labor.
  • You can produce the output at the real cost. Then transform it into the logarithmic form.
  • The function includes an index which measures the changes in technological reforms.
  • The demand of labor relates to the number of people employed for the development of the product for a particular time. Then, you can convert the time series in the logarithmic form.
  • The fixed capital stock includes the amount of money used in the production of output in a specified period. You can then convert the series into logarithmic form.
  • You may face biases while estimating the cost production. Hence, you can use the dummy variables here.
  • Now test the data series in their logarithmic form for stationary as well as for the level of integration.

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