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Production of good one (energy) uses Cobb-Douglas technology, using capital K_E and labor L_E as inputs X_1=A_E K_E^(_E ) L_E^(1-_E ) (3) A_E is a
Production of good one (energy) uses Cobb-Douglas technology, using capital K_E and labor L_E as inputs X_1=A_E K_E^(_E ) L_E^(1-_E ) (3) A_E is a fixed production function parameter (chosen to make the initial price of energy p=1 ) Labor L_E can be purchased at the market wage w Capital K_E can be purchased at the market price r, set up producer max profit
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International Economics
Authors: Dominick Salvatore
11th edition
978-1118177938, 1118177932, 1119915732, 978-1118476017, 1118476018, 978-1119915737
