4 Some forms of cost functions If x=(x, x), corresponding price w=(w, wr) and x,=2 is the limited factor(fixed assets While x, =x, (w,a,x, is the variable factor The total cost is C(w,a,,)=STC=SCV+FC=w,X, w,q,x,)+wX SAC=C(,q,x)/ q, SAVC=w,X, ( w,a,x )7 SAFC=WX q, SC=OC(,q,x,)/dc lecture 3 for Chu Kechen Honors Collegelecture3 for Chu Kechen Honors College 4.Some forms of cost functions ▪ If , corresponding price , and is the limited factor (fixed assets), while is the variable factor. The total cost is ( , ) = v f x x x ( , ) w w w = v f f x = z ( , , ) v v f x x w x = q ( , , ) ( , , ) f v v f f f c q STC SCV FC q w x w x w x w x = = + = + ( , , ) / , ( , , ) / / , ( , , ) / f v v f f f f SAC c q q SAVC q q SAFC q SMC c q q = = = =   w x w x w x w x w x