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Unformatted text preview: Properties of cost functions Property 1: HD1 in input prices Property 2: Increasing in input prices Property 3: Increasing in x Property 4: Shephards Lemma C ( w , r , x ) w = l c ( w , r , x ) Cost functions to supply functions max x pxC ( w , r , x ) Back to input demands Substitute supply function in for x in the conditional input demands to get (unconditional) input demands. Short and long run supply curves Short and long run supply curves 2 Short and long run input demand curves Short and long run input demand curves 2...
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 Fall '09
 CUR
 Microeconomics

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