Question

Cost minimization for a given level of production is equivalent or identical the concept of product maximization for a given cost level. True of False. Explain. Please offer examples and the use of graphs where necessary, and state any assumption(s) that you need to arrive at your conclusion.

Answer 1

"True"

Cost minimization for a given level of production will mean that using the most efficient production and that will lead to the minimum cost for each goods produced. If the cost of production for a given cost is minimum then the output at that will be the maximum.

For example, For $100 a burger joint can produce 20 burgers, if they are most efficient or their cost is minimized they can produce a 25 burgers. those 25 burgers will also be the maximum that they will produce. hence cost minimization = product maximization.