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In: Economics

Consider a firm using the following long-run technology: q=f(x1,x2)=1/3ln⁡(x1)+1/6ln⁡(x2) Where output and input prices are given...

Consider a firm using the following long-run technology: q=f(x1,x2)=1/3ln⁡(x1)+1/6ln⁡(x2) Where output and input prices are given by the non-negative constant vector (p,w1=2,w2=1). Which of the following is the correct expression for the firm's optimized profit function π(p)?

  1. 1/2(ln⁡(p/6)−1)
    1. 1/2p(ln⁡(p/6)−1)
      1. 1/2p(ln⁡(p/6)+1)
        1. 1/2(ln⁡(p/6)+1)

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Expert Solution

Rahul Sunny answered 3 years ago
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