Question

Given production function ,Y=X^a in maximum profit .
a) The factor demand function
b)The supply function

Answer 1

of the factor

a) The factor demand function is given by the equation Q = (PY/PX)^(1/a), where Q is the quantity of the factor demanded, PY is the price of the output, and PX is the price of the factor.

b) The supply function of the factor is given by the equation Q = (PX/PY)^(1/a), where Q is the quantity of the factor supplied, PY is the price of the output, and PX is the price of the factor.