Question
A quadratic profit function profit (pie sign) (Q)=hQ^2+jQ+k is to be used to reflect the following assumptions: A. If nothing is produced, the profit will
A quadratic profit function profit (pie sign) (Q)=hQ^2+jQ+k is to be used to reflect the following assumptions:
A. If nothing is produced, the profit will be negative (because of fixed costs).
B. The profit function is strictly concave.
C. The maximum profit occurs at a positive output level Q*.
What parameter restrictions are called for?
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Environmental And Natural Resource Economics
Authors: Thomas H Tietenberg, Lynne Lewis
10th Edition
1315523965, 9781315523965
