2. Properties of cost function Proposition: c(w, q) is homogeneous of degree 1 in w, and non-decreasing in q Proposition 2: c(w, q) is concave function of Proposition3: x(w, g) is homogeneous of degree 0 in w Proposition4: if v(q) is convex, then is x( if v(g is strictly convex, x(. is single point lecture 3 for Chu Kechen Honors Collegelecture3 for Chu Kechen Honors College 2.Properties of cost function ▪ Proposition1: c(w,q) is homogeneous of degree 1 in w, and non-decreasing in q. ▪ Proposition2: c(w,q) is concave function of w. ▪ Proposition3: x(w,q) is homogeneous of degree 0 in w. ▪ Proposition4:if V(q) is convex, then is x(.) if V(q) is strictly convex, x(.) is single point