Derive the profit function

Reference no: EM1370289

Consider the problem of maximizing the profit function (pi)= pY -wL subject to the production function Y= L to the alpha (as the exponent) where alpha E (epsilon) (0,1). derive the profit function and confirm that Hotellings Lemma is met. What happens if alpha = 1?

Reference no: EM1370289

Questions Cloud

Short-run marginal cost curves : If the government imposes a $1 per-unit tax, how do the marginal, average total, and average variable costs change? What if instead the government imposes a $100 per-firm tax?

Product warranty : Have you ever purchased a product and a few days after the warranty expires the product breaks? What are your thoughts around this?

Coast guard cutter decision problem : The Sugar Substitute Research Decision - Coast Guard Cutter Decision Problem, what factors led you to choose this alternative rather than the others

Explain what are the strategic implications : Explain What are the strategic implications of this decision for retailers such as Movie Theaters, Recreation Parks, and Fast Food Companies?

Derive the profit function : Consider the problem of maximizing the profit function (pi)= pY -wL subject to the production function Y= L to the alpha (as the exponent) where alpha E (epsilon) (0,1).

Find the producer surplus : The short run supply curve for an orange producer in Florida is P=.001Q, where Q is bushels of oranges produced in a year. The market value of a bushel of oranges is $20 a bushel.

Explain how to retrieve certificates from directory : Retrieving certificates from the directory, having no directory but having each principal responsible for keping its own certificate, and sending it to someone who needs to talk to it?"

Explain how about the impact of a merger on customers : Explain How about the impact of a merger on customers and What would the determinants of supply suggest would happen?

Computation process for optimal output : Allied company machines produces the output that it sells in the highly competitive market at the price of $100 per unit. Its inputs include two machines (which cost the firm $50 each) and workers

User Account

All Pages