Anonymous
Anonymous asked in Science & MathematicsMathematics · 1 decade ago

important need answers fast?

A firm uses capital K, Labour L, and land T to produce Q units of a commodity, where Q= K^2/3 +L^1/2 +T^1/3.

a) Suppose that the firm is paid p for each unit it produces and that the proces it pays per unit of K, L, T are r,w and q respectively. Find the values pf K,L,T(as functions of the 4 prices) that maximize the firm's profits,

(symbol for pie)=p(K^2/3 +L^1/2 +T^1/3)- rK-wL-qT

***max exists and all constants are positive

b) Let Q* denote the optimal number of units produced and K* the optimal captial stock. Show that (partial derivative)Q*/(partial derivative)r = - (partial derivative)K*/(partial derivative)p

3 Answers

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  • Apolo
    Lv 6
    1 decade ago
    Favorite Answer

    Reading this kind of questions, I feel like a x-y (remember Brave New World - A. Huxley). I 'd like to have time to study, to learn about this...

    I'll wait for an answer, by I'm afraid that noone will give a good answer - very hard question!

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  • Anonymous
    1 decade ago

    Here you go. I have pasted some resources for you. The slide show should be exceedingly helpful. I will edit this as soon as I get the answer.

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  • 1 decade ago

    i have just finished calculus,, still cant help ya... too advanced for me... and i dont get what the question is asking... too life applicable to me

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