This preview shows page 1. Sign up to view the full content.
Unformatted text preview: c ( x ) = ax , > 1 and the firms profits are given by = Px " ax # , then a profit-maximizing firm will operate where P = ax " 1 , implying input demand is: x = P a " # $ % & 1 ( 1 If you are a bit rusty, dont be intimidated. We will progress gradually with the mathematical analyisis....
View Full Document
This note was uploaded on 11/16/2008 for the course ECON 101 taught by Professor Wood during the Spring '07 term at University of California, Berkeley.
- Spring '07