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Chapter 6 Appendix

Chapter 6 Appendix: The Calculus of Cost Minimization

In the appendix to Chapter 4, we saw that calculus makes solving the consumer’s optimization problem easier. The benefits of using calculus also extend to the firm’s constrained optimization problem, cost minimization. Cost minimization is analogous to expenditure minimization for the consumer, and the exercise of solving the producer’s optimization problem will serve as a refresher in constrained optimization problems.