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Questions tagged [cost]

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Why do prices of consumer products seem to rise independent of their supply?

For example, in my country, the price of coconuts steadily rises, despite the fact that we still have plenty of coconuts. The same with vegetables. Is this caused primarily by an increase in the cost ...
HANZEL HARRY FERNANDEZ's user avatar
0 votes
1 answer
106 views

Perfect competition profits question

Market is supplied by: 50 competitive companies all of them have relatively low costs given by an equation $C_l(q)=350+2q+q^2$ and by n companies of higher costs given by an equation $C_h(q)=400+2q+q^...
Krowskir's user avatar
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8 votes
2 answers
44k views

How to derive firm's cost function from production function?

I recently learned how to solve the following type of problem using the method of Lagrangian multipliers: Given a consumer with utility function $u(x,y)$, wealth $w$, prices $p =(p_x,p_y)$, budget ...
Stan Shunpike's user avatar
3 votes
3 answers
2k views

Deriving and explaining the weighted cost of capital

The Wikipedia article for the "weighted cost of capital" (WACC) defines the WACC as "the rate that a company is expected to pay on average to all its security holders to finance its ...
jmbejara's user avatar
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