201. Some Propositions on Cost Functions
- Author
-
Norman Keith Womer
- Subjects
Economics and Econometrics ,Mathematical optimization ,Discounted cost ,Cost estimate ,Mathematical model ,Learning curve ,Scheduling (production processes) ,Economics ,Cost analysis ,Long-run cost curves - Abstract
In this paper, a model is developed for a firm producing to an order which specifies a quantity and a delivery date for output. The order serves to constrain a production program which minimizes the discounted cost of producing at a constant output rate. The model is formed by augmenting a homogenous production function with a learning hypothesis and deriving a cost function. The cost function is then compared to several results due to Alchian, Hirshleifer, and Oi.
- Published
- 1981