=+h. In (g) of exercise 12.5, you were asked to calculate the profit-maximizing output level when a
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=+h. In (g) of exercise 12.5, you were asked to calculate the profit-maximizing output level when a 5 100, b 5 g 5 5 5 p, and w 5 r 5 20. You did so using the input demand functions calculated from the profit maximization problem. You can now use the supply function derived from the cost minimization problem to verify your answer (which should have been 91.23 units of output). Then verify that your answer is also the same as it was before (93.59) when r falls to 10.
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Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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