Question: H i everyone! need help w hw:) Pls show work as well Problem 3. (20 points) A profit-maximizing firm produces apples, and its production function
Problem 3. (20 points) A profit-maximizing firm produces apples, and its production function is y = f(L) = V where L is the level of labor. Suppose the wage is w = 3. The price of one apple is denoted by Pa 1. Write down the profit maximization problem. Find the optimal production level y" (pa). 1 2. Suppose now that the demand is determined by the formula x" (p.) = Plot the inverse demand and supply curves together. Determine the equilibrium price and quantity Problem 3. (20 points) A profit-maximizing firm produces apples, and its production function is y = f(L) = V where L is the level of labor. Suppose the wage is w = 3. The price of one apple is denoted by Pa 1. Write down the profit maximization problem. Find the optimal production level y" (pa). 1 2. Suppose now that the demand is determined by the formula x" (p.) = Plot the inverse demand and supply curves together. Determine the equilibrium price and quantity
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