The cost function given imperfectly flexible capital

Robert A. Becker*, Daniel F. Spulber

*Corresponding author for this work

Research output: Contribution to journalArticle

1 Scopus citations

Abstract

The properties of the firm's cost function are examined when investment is irreversible and there are costs of capital adjustment. The effects of the firm's initial capital stock on total, marginal and average costs are analysed.

Original languageEnglish (US)
Pages (from-to)197-204
Number of pages8
JournalEconomics Letters
Volume16
Issue number3-4
DOIs
Publication statusPublished - Jan 1 1984

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ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

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