Unformatted text preview: 3) If ) , ( * w P L L = is the solution to the firm’s 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 firm’s 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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 Spring '11
 Stevens
 Economics, Supply And Demand, Englishlanguage films, Dr. Dre

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