題組內容

II. The production function of Firm A is

$$q^A = \min\{2L, 2K\}.$$

Firm A is a price taker at the factor market. The unit price of L is 1, and the unit price of K is r > 0. The inverse demand at the product market is p = 1 - Q, where p is the market price and Q the market quantity.

2. (4%) If Firm $ A $ is a monopoly firm at the product market, what is its profit-maximizing output?

Another firm, Firm B, faces the same input prices as Firm A, but produces the same product with a different product function,

$$q^B = (\sqrt{L} + \sqrt{K})^2.$$

題組內容

2. (4%) If Firm \( A \) is a monopoly firm at the product market, what is its profit-maximizing output?

Another firm, Firm B, faces the same input prices as Firm A, but produces the same product with a different product function,

$$q^B = (\sqrt{L} + \sqrt{K})^2.$$

相關申論題

相關試卷

題組內容

2. (4%) If Firm \( A \) is a monopoly firm at the product market, what is its profit-maximizing output?Another firm, Firm B, faces the same input prices as Firm A, but produces the same product with a different product function,$$q^B = (\sqrt{L} + \sqrt{K})^2.$$

相關申論題

相關試卷

2. (4%) If Firm \( A \) is a monopoly firm at the product market, what is its profit-maximizing output?

Another firm, Firm B, faces the same input prices as Firm A, but produces the same product with a different product function,

$$q^B = (\sqrt{L} + \sqrt{K})^2.$$