Tuesday

October 21, 2014

October 21, 2014

Posted by **Anonymous** on Thursday, May 6, 2010 at 1:14pm.

0 <α< 1 and 0 <β< 1. The firm can purchase labor (L) and capital (K) it wants in competitive input market at unit prices of w and r, respectively. The market price of the firm’s output is p.

a) Find the profit maximizing quantities of labor, L* and capital, K* and output, Y*.

b) Is Y* an increasing function of output price?

c) How does the profit maximizing level of output change when the rental rate of capital is decreased?

**Answer this Question**

**Related Questions**

math - Complex numbers α and β satisfy αα¯=ββ¯=&#...

Math - If α and β are two angles in Quadrant II such that tan α...

Pure Mathematics - 4) The roots of the equation z^2+2z+4=0 are denoted by α...

physics (speed of plane by radar) - The radar stations A and B, separated by the...

mechanics (calculating plane speed and climb angle - Two radar stations A and B...

physics - Let |α⟩=1M√∑M−1j=0αj|j⟩ and ...

math - Is g = {(1, 1), (2, 3), (3, 5), (4, 7)} a function? Justify. If this is ...

Trig - prove sin(α+β)sin(α-β)=cos^2β-cos^2α please...

Trigonometry - The quadratic equation x^2−9x+10=0 has roots tanα and ...

economics - You are hired as the consultant to a monopolistically competitive ...