Question
Suppose a firm has a constant returns to scale (CRS) Cobb- Douglas production function f(k,n) = k?n1?? where k is capital and n is labor.
Suppose a firm has a constant returns to scale (CRS) Cobb- Douglas production function f(k,n) = k?n1?? where k is capital and n is labor. The firm chooses current period labor, future period labor, and investment to maximize the value of the firm. We can formulate the inter-temporal problem of the firm by considering two static versions of the firm problem separately:
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E Marketing
Authors: Raymond Frost
7th Edition INTERNATIONAL EDITION
0132953443, 978-0132953443
