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  • The Profite Function Z

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    MohammadHas'san
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    just as ok if if not LOL

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    The Profite Function z

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    just as ok if if not LOL

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    9 views1 page

    The Profite Function Z

    Uploaded by

    MohammadHas'san
    just as ok if if not LOL

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    the profite function z=pY-rK-wL

    where p=price of output, r=price of capital and w=price of


    labour. and the constraint is Y=f(K,L). now substituting
    Y=f(K,L) into profite function we get Z=pf(K,L)-rK-wL.
    now 1st order condition for max profit (partial derivative
    and setting equal to zero) dz/dk= pfK-r=0

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