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Unformatted text preview: 3) If ) , ( * w P L L = is the solution to the firms profit maximization problem wL L F P L ) ( max , what is the formula for w w P L ) , ( ? (Hint: Think about the Implicit Function Theorem and assume that ) ( ' ' L F is always negative.) 4) Let ) , , ( * w v P q q = be the solution to the firms profit maximization problem ) , , ( max w v q TC q P q Derive the formula for P w v P q ) , , ( in terms of (among other things) q w v q MC ) , , ( ....
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This note was uploaded on 11/30/2011 for the course STAT 380 taught by Professor Stevens during the Spring '11 term at Brigham Young University, Hawaii.
- Spring '11