Question
consider a firm that has some transformation function F(y) for L commodities, and the optimal input y(p) resulting from profit maximization. Claim: y(p) is homogeneous
consider a firm that has some transformation function F(y) for L commodities, and the optimal input y(p) resulting from profit maximization. Claim: y(p) is homogeneous of degree 0 in prices. Prove this claim
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Authors: Jeffrey F Beatty, Susan S Samuelson
3rd Edition
0324537115, 9780324537116
