Question: 6. A purely competitive firm has a single variable input L (labor), with the wage rate Wo per period. Its fixed inputs cost the firm

6. A purely competitive firm has a single variable input L

(labor), with the wage rate Wo per period. Its fixed inputs cost

6. A purely competitive firm has a single variable input L (labor), with the wage rate Wo per period. Its fixed inputs cost the firm a total of Fdollars per period. The price of the product is Po. (a) Write the production function, revenue function, cost function, and profit function of the firm, (b) What is the first-order condition for profit maximization? Give this condition an economic interpretation. ( What economic circumstances would ensure that profit is maximized rather than minimized

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