Given: TR = 2x TC = (x^2/8 + w*x) where x is the only input in...

 

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Given: TR = 2x TC = (x^2/8 + w*x) where x is the only input in a firm's production function price = P = 1 a) is the profit function P*TR + TC or P*MR + MC? b) How do you derive the demand function as a function of w? Given: TR = 2x TC = (x^2/8 + w*x) where x is the only input in a firm's production function price = P = 1 a) is the profit function P*TR + TC or P*MR + MC? b) How do you derive the demand function as a function of w?

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a The profit function is given by Profit Total Revenue TR Total Cos... View the full answer