Set up the symmetric quadratic programming specification

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Reference no: EM131483851

Question: Symmetric quadratic programming (SQP) is suitable for analyzing monopolistic and monopsonistic behavior. Assume that the entrepreneur is a perfectly discriminating monopolist and a perfectly discriminating monopsonist. Given final commodity prices p = c - Dx and input prices P_s = g + G_s, where D is a symmetric positive semidefinite matrix and G is a symmetric positive definite matrix, and given that the entrepreneur operates a linear technology A,

(a) Set up the appropriate symmetric quadratic programming specification and describe your work in detail.

(b) Derive the dual specification and give an accurate economic interpretation of each component.

Reference no: EM131483851

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