Answer to Question #12645 in Microeconomics for Srijita Sen

Question

identify the correct statement:
a)strict concavity of production function is vital for profit maximization.
b)strict concavity of production function is necessary for cost minimization.
c)quasi-concavity of production function is necessary for cost minimization.
d)quasi-concavity of production function is all that we need for profit maximization

Answer 1

b)strict concavity of production function is necessary for cost
minimization.
Because in the lowest point of the production function you will
have the lowest costs.