Question: I'm stuck in the question solve this question quickly In this problem you have the following relevant information: Firm 0 maximizes its profit, V, with

I'm stuck in the question solve this question quickly

I'm stuck in the question solve this question quickly In this problem

In this problem you have the following relevant information: Firm 0 maximizes its profit, V, with respect to its R&D level, ro, and therefore solves the following problem: max 10 = II((ro, rr), km) - ro, TO where r >O is the given R&D of firm T, kim > 0 is the given level of knowledge of firm m and does not involve ro, and II and o are functions, and in particular, o is non-decreasing and concave in both arguments. The first order condition is thus avo = 0 I1101-1=0, where the subscripts denote partial derivatives with respect to the different argu- ments. Problem: Compute oro/arr. (Hint: To solve the problem use implicit differentiation and write the expression in terms of II), 1111, 01, 011, 012, 02.) In this problem you have the following relevant information: Firm 0 maximizes its profit, V, with respect to its R&D level, ro, and therefore solves the following problem: max 10 = II((ro, rr), km) - ro, TO where r >O is the given R&D of firm T, kim > 0 is the given level of knowledge of firm m and does not involve ro, and II and o are functions, and in particular, o is non-decreasing and concave in both arguments. The first order condition is thus avo = 0 I1101-1=0, where the subscripts denote partial derivatives with respect to the different argu- ments. Problem: Compute oro/arr. (Hint: To solve the problem use implicit differentiation and write the expression in terms of II), 1111, 01, 011, 012, 02.)

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