What is the primary goal of a firm's cost function in the context of cost minimization?

The primary goal of a firm's cost function in the context of cost minimization is to reduce the expenses involved in producing goods or services while maintaining the desired level of output. This means that firms want to find the most efficient way to use their resources, such as labor and materials, to produce their products at the lowest possible cost. For example, if a bakery wants to make 100 loaves of bread, it needs to figure out how to use its ingredients and equipment in the best way to minimize costs while still making high-quality bread. By analyzing different production methods and input combinations, the firm can identify the most cost-effective approach. Ultimately, cost minimization helps firms increase their profits by lowering their expenses.