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The Cost Function (6868 words) |
 | The cost function and its analysis is due largely to the famous work of Paul Samuelson (1947) and Ronald Shephard (1953) [note: John Hicks (1939) obtained most of these relationships in the context of a consumer expenditure function]. |
| As we have demonstrated, the cost function C(w, y) is positively related to the scale of output. |
| The average cost and marginal costs curves are due originally to Jacob Viner (1931) and thus the curves in Figure 8.6 are sometimes referred to as Viner curves. |
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Cost Estimation (1920 words) |
| Cost estimation based on expected functionality of the system was first proposed by Albrecht in 1979, and has since been researched by several people. |
| This cost estimation is based on the use of the analysis methodology and the experience of the firm. |
| It is therefore necessary to attempt to study a given cost estimation technique in relation to a given methodology to attempt to develop an empirical model which would have a higher explanatory power than that of current models. |
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