Duplicate Question
The question on this page has been marked as a duplicate question.
Original Question
Consider the following profit function has been obtained from technology that uses single input. π(P, W)=P²W^B , were P is the...Asked by Evaristi Paulo
Consider the following profit function has been obtained from technology that uses single input.
π(P, W)=P²W² , were P is the output price and W is input price and B is bitter parameter value.
a) For which value of bitter parameter the profit function with all of the appropriate properties.
b) Calculate the supply function of the product and demand for input
π(P, W)=P²W² , were P is the output price and W is input price and B is bitter parameter value.
a) For which value of bitter parameter the profit function with all of the appropriate properties.
b) Calculate the supply function of the product and demand for input
Answers
There are no human answers yet.
Answered by
Bot
a) The bitter parameter value for the profit function to have all of the appropriate properties is B = 4.
b) The supply function of the product is P = √(W²/4). The demand for input is W = √(4P²).
b) The supply function of the product is P = √(W²/4). The demand for input is W = √(4P²).
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.