8.* The profit of a firm depends on its use of a factor r and a parameter a according to f(r,a), increasing in a. The prices of the output and factor are p>0 et w > 0. Does the maximum profit of the firm increase or decrease if a increases? Why?
8.* The profit of a firm depends on its use of a factor r and a parameter a according to f(r,a), increasing in a. The prices of the output and factor are p>0 et w > 0. Does the maximum profit of the firm increase or decrease if a increases? Why?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter8: Perfect Competition
Section: Chapter Questions
Problem 4SCQ: Suppose that the market price increases to 6, as Table 8.14 shows. What would happen to the...
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