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A profit maximizing firm has a production function such that:
Y=K2L2
a) If P=10,rk=2,andWL=3 , what would be its optimum be? How can you show that it is a maximum?
b) How would the answer change if it needs to produce at least 100 units of Y and that it now is a cost minimizing firm?
Imagine a firm with the same cost structure but in each of the four market structures: Competitive, Monopolistically Competitive, Oligopoly, and a Monopoly. Using the concepts of c
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Q. Relationship between L and P? • As long as L is smaller than LB, L may change with no change in prices. In this range, there is no relation between L andP. • When L is betw
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conditions for steady state in solow model.in what respects is golden rule different from steady state?
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