The cost function is:
A) a means for expressing output as a function of cost
B) a schedule or mathematical relationship showing the total cost of producing various quantities of output
C) similar to a profit and loss statement
D) incapable in being developed from statistical regression analysis
E) none of the above

Question

Quizplus · Accepted Answer

The cost function is a schedule or mathematical relationship showing the total cost of producing various quantities of output. It helps in determining the minimum cost to produce a given level of output and aids decision-making in production planning and pricing.

The Cost Function Is