E. Consider the following production function1. q = A kº |Bp. What is the indirect profit function?q. Show that Hotelling's lemma holds.r. Let k is constant at ko=1a. What is the contingent labor demand curve?b. What is the indirect cost function?c. What is the firms supply curve?d. If there are identical 1000 firms, then what is the market supply curve?

Answered: E. Consider the following production…

E. Consider the following production function 1. q = A k° 19 p. What is the indirect profit function? q. Show that Hotelling's lemma holds.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

E. Consider the following production function
1. q = A kº |B
p. What is the indirect profit function?
q. Show that Hotelling's lemma holds.
r. Let k is constant at ko=1
a. What is the contingent labor demand curve?
b. What is the indirect cost function?
c. What is the firms supply curve?
d. If there are identical 1000 firms, then what is the market supply curve?

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