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Proposition 2.6 Suppose that F is regular. Then an expected profit maximizing choice of q is given by the following: • If v (0) (0 -) c, then q(0) is the unique solution such that 1-F(@) 1- F(0) f(0) (4) =C. The corresponding expected profit maximizing t is given by t(0) = Ov(q(@)) – | vq(x))dr. Problem : Prove that the function q(@), @ <0<ö obtained by Proposition 2.6 is increasing if F is regular.

Proposition 2.6 Suppose that F is regular. Then an expected profit maximizing choice of q is given by the following: • If v (0) (0 -) c, then q(0) is the unique solution such that 1-F(@) 1- F(0) f(0) (4) =C. The corresponding expected profit maximizing t is given by t(0) = Ov(q(@)) – | vq(x))dr. Problem : Prove that the function q(@), @ <0<ö obtained by Proposition 2.6 is increasing if F is regular.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Proposition 2.6 Suppose that F is regular. Then an expected profit maximizing choice of q is given by the following: • If v (0) (0 - 7)<c, then F(0) q(0) = 0. • If / (0) (0 - 1-F(0) S(0) > c, then q(@) is the unique solution such that 1- F(0) f(6) = c. The corresponding expected profit maximizing t is given by t(0) = Ov(q(0)) – v(q(x))dx. Problem : Prove that the function q(0), @ <0<0 obtained by Proposition 2.6 is increasing if F is regular. ??
Transcribed Image Text:Proposition 2.6 Suppose that F is regular. Then an expected profit maximizing choice of q is given by the following: • If v (0) (0 - 7)<c, then F(0) q(0) = 0. • If / (0) (0 - 1-F(0) S(0) > c, then q(@) is the unique solution such that 1- F(0) f(6) = c. The corresponding expected profit maximizing t is given by t(0) = Ov(q(0)) – v(q(x))dx. Problem : Prove that the function q(0), @ <0<0 obtained by Proposition 2.6 is increasing if F is regular. ??
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