Consider a single-product firm under monopoly. The firm’s profit function is given by ? = PQ-wL-rK, where P=price, Q=output, L=labor, K=capital, w=wage, and r=rent.
Need Help Writing an Essay?
Tell us about your assignment and we will find the best writer for your paper.
Get Help Now!Let the market demand function and the firm’s production function be Q=PQ=P-2 and Q=K raised to the power (4/5)*L raised to the power (4/5), respectively.
(a) Is the production function homogeneous? If so, of what degree? Discuss the returns to scale for this function.
(b) Is the production concave? Is it quasiconcave? Show your work.
(c) Rewrite the profit function as a function of L and K. Is it homogeneous with respect to L & K? If so, of what degree?
(d) Is the profit function concave in L &K? Is it quasiconcave? Show your work.
(e) What would happen if this function pertained to a perfect competition instead of a monopoly?
Additional Requirements
Min Pages: 1
Level of Detail: Show all work
Other Requirements: Production Function: Q=K?4/5L?4/5
Get Quick Assignment Writing Help – No Plagiarism Guarantee!
onlineessayshub.com is one of the Online assignment writing service websites that provide university students with original and quality academic scholarship essays, personal statements, research proposals, essays, term papers, admission essays, annotated bibliographies, reports, research papers, projects, presentations, dissertation, theses, movie reviews, Book reviews, application papers, among others.
Expert Essay Writing to Cover All Your Writing Needs!
