Question
Suppose a profit maximizing firm has the following profit function(L)=pf(L)wLrK wheref(L)=L a K andK >0is the firm's fixed level of capital.The productivity parametera>0.Assumingp>0, which of
Suppose a profit maximizing firm has the following profit function(L)=pf(L)wLrKwheref(L)=LaKandK>0is the firm's fixed level of capital.The productivity parametera>0.Assumingp>0, which of the following conditions would ensure there exists a short-run profit maximizing level of output for the firm?
A.a>=1
B.a<1
C.a<=1
D.a>1
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A Textbook Of Mathematical Economics
Authors: Dr Chandrakant Singh
1st Edition
9353140986, 9789353140984
