12. Prove, using Eq. (4-42), that the long-run supply curve of a competitive firm is more elastic than the supply curve in which one factor is held fixed at a previously profit- maximizing level. Differentiating with respect to p, -歌。()(等) ay* əy Əy (4-42) ap ap əx. ap

12. Prove, using Eq. (4-42), that the long-run supply curve of a competitive firm is more elastic than the supply curve in which one factor is held fixed at a previously profit- maximizing level. Differentiating with respect to p, -歌。()(等) ay* əy Əy (4-42) ap ap əx. ap

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

12. Prove, using Eq. (4-42), that the long-run supply curve of a competitive firm is more
elastic than the supply curve in which one factor is held fixed at a previously profit-
maximizing level.
Differentiating with respect to p,
əy _ y + () )
ay*
(4-42)
др
ap

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