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P#1: A quadratic Profit function (@= hq2+jQ+k is to be used to reflect the following assumptions: a) If nothing is produced the profit will be
P#1: A quadratic Profit function (@= hq2+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 level of output What parameter restrictions are called for? ( Note that the parameters are h, j, and k)
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