What is an engineering cost curve and what is the relevance of an engineering cost curve in economics?

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1034605

2026-10-14 21:40

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The engineering

cost curve are derived with the help of engineering production

function . The productionfunction specified the techniques of

production, the embodiment of labor and capital etc. It means that

each production method is divided into sub activities corresponding

to the various physical and technical phases of production for the

particular commodity. Engineering production method/function are

characterised by a limited number of methods of production. The

production iso-quants are kinked reflecting that the factor

subsititutablity is limited. It means that the factor of production

can be substituted is only possible at kinked of iso-quants.

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