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I'm stuck in the question solve this question quickly In this problem you have the following relevant information: Firm 0 maximizes its profit, V, with
I'm stuck in the question solve this question quickly
In this problem you have the following relevant information: Firm 0 maximizes its profit, V, with respect to its R&D level, ro, and therefore solves the following problem: max 10 = II((ro, rr), km) - ro, TO where r >O is the given R&D of firm T, kim > 0 is the given level of knowledge of firm m and does not involve ro, and II and o are functions, and in particular, o is non-decreasing and concave in both arguments. The first order condition is thus avo = 0 I1101-1=0, where the subscripts denote partial derivatives with respect to the different argu- ments. Problem: Compute oro/arr. (Hint: To solve the problem use implicit differentiation and write the expression in terms of II), 1111, 01, 011, 012, 02.) In this problem you have the following relevant information: Firm 0 maximizes its profit, V, with respect to its R&D level, ro, and therefore solves the following problem: max 10 = II((ro, rr), km) - ro, TO where r >O is the given R&D of firm T, kim > 0 is the given level of knowledge of firm m and does not involve ro, and II and o are functions, and in particular, o is non-decreasing and concave in both arguments. The first order condition is thus avo = 0 I1101-1=0, where the subscripts denote partial derivatives with respect to the different argu- ments. Problem: Compute oro/arr. (Hint: To solve the problem use implicit differentiation and write the expression in terms of II), 1111, 01, 011, 012, 02.)
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