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Shephard's lemma is a result in microeconomics having applications in the theory of the firm and in consumer choice. [1] The lemma states that if indifference curves of the expenditure or cost function are convex, then the cost-minimizing point of a given good with price is unique.
The expenditure function is the inverse of the indirect utility function when the prices are kept constant. I.e, for every price vector and income level : [1]: 106 (, (,)) There is a duality relationship between the expenditure function and the utility function.
"Expenditure" specifically means that the expenditure approach was used. All three counting methods should in theory give the same final figure. However, in practice, minor differences are obtained from the three methods for several reasons, including changes in inventory levels and errors in the statistics.
Government spending or expenditure includes all government consumption, investment, and transfer payments. [1] [2] In national income accounting, the acquisition by governments of goods and services for current use, to directly satisfy the individual or collective needs of the community, is classed as government final consumption expenditure.
The indirect utility function is the inverse of the expenditure function when the prices are kept constant. I.e, for every price vector p {\displaystyle p} and utility level u {\displaystyle u} : [ 1 ] : 106
Finding the balance between income and expenditures is the goal in public budgeting but the specific income sources and services provided are equally important topic in the discussion about public budgeting.
Marginal cost (MC): Marginal cost is obtained from the additional cost that results from increasing output by one unit. It is the additional cost per additional unit of output. [7] Cost curves: It is the graphical presentation of the costs of production as a function of total quantity produced [8] [9]
Cost function. In economics, the cost curve, expressing production costs in terms of the amount produced. In mathematical optimization, ...