A firm has the production function Q = 2K 1/2L 1/4 and the price of the product P = 4 and its input prices are Pk = 4 and PL = 1. Find out the a) Profit maximising output and b) maximum profit. And also check for Hessian Border condition.
A firm has the production function Q = 2K 1/2L 1/4 and the price of the product P = 4 and its input prices are Pk = 4 and PL = 1. Find out the a) Profit maximising output and b) maximum profit. And also check for Hessian Border condition.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 5MC
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