Class notes
THEORY OF THE FIRM IV: THE PROFIF FUNCTION. ( MICRO-ECONOMICS THEORY III)
- Institution
- Harvard University
PROPERTIES OF THE PROFIT FUNCTION (i) The profits are non-negative i.e. a producer never accepts negative profits in the long run (ii) Its non-decreasing in output price, if p and p'are two output prices and that p p' the profits evaluated: p,w p'w (iii) The profit...
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