micro-fall2007-16 - y : y & = y ( p ; w 1 ; w 2...

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Demand- and Supply Functions of the Firm Demand- and Supply Functions of the Firm Choose y so that π = py c ( w 1 ; w 2 ; y ) is maximized under the constraints π c ( w 1 ; w 2 ; 0 ) y ± 0. First-order condition: Price = Marginal costs p = c ( w 1 ; w 2 ; y ) y . Ani Guerdjikova ECON 313 Fall 2007 169 / 181
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Demand- and Supply Functions of the Firm Solution ( i ) The supply of consumption good
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Unformatted text preview: y : y & = y ( p ; w 1 ; w 2 ) ( ii ) The pro&t function & = ( p ; w 1 ; w 2 ) Ani Guerdjikova ECON 313 Fall 2007 170 / 181 Demand- and Supply Functions of the Firm 6-. . . . . . . . . . . . . . . . . . . . . . . . . SAC SMC VAC y p Short-run cost analysis S ( p ) Ani Guerdjikova ECON 313 Fall 2007 171 / 181...
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This note was uploaded on 04/30/2008 for the course ECON 3130 taught by Professor Masson during the Fall '06 term at Cornell University (Engineering School).

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micro-fall2007-16 - y : y & = y ( p ; w 1 ; w 2...

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