Answer to Question #57111 in Microeconomics for kia

Question

Consider a firm operating in a perfectly competitive market economic system, and
her production function is defined as Y= (L, K) and total cost is C= wL + rK, where L
and K are respectively labor and capital, and w and r are unit prices of labor and
capital respectively. If the production system assumes the Cobb-Douglas function
and the product Y is sold at a unit price (p), then
a) Formulate the profit function for the firm
b) Determine the derived demand functions for each factor that would maximize
the firm's profit
c) What should be the conditional output supply function that maximizes the firm's
profit?