Question: profit maximisation Problem 2. A price-taking (small) rm's production function is f = m. a. Find the prot-maximizing output level q* as a function of

profit maximisation

profit maximisation Problem 2. A price-taking (\"small\") rm's production function is f

Problem 2. A price-taking (\"small\") rm's production function is f = m. a. Find the prot-maximizing output level q* as a function of output price p, capital price v and labor price w. 1). Based on your answer in (a), use cost minimization to nd the prot- maximizing input combo k*,l* as functions of (p, v, w). c. Find the prot function 1'I(p, v, w). d. Verify that 8H = k*. 61) e. Solve the optimization problem mama, ; p f (k, l) vk wl. Verify that the solution is the same as (19*, l*) found in part (b)

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