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Answer to Question #218245 in Economics for lena
Question #218245
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
Expert's answer
If p is the output price and w is the price of labor, then the profit function for the firm is:
"TP = p\u00d7Y - X\u00d7w = p\u00d7X^{1\/2} - w\u00d7X."
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