Question

A firm production function is given by Y=X^1/2 where Y is output and X is labor inputs. Let p be the output price and be the price of labor. Derive the profit function for the firm

Answer 1

If p is the output price and w is the price of labor, then the profit function for the firm is:

$TP = p×Y - X×w = p×X^{1/2} - w×X.$