Question

The revenue function of the Monopolistic firm is defined by TR-50L 212 30K 2K2 while the cost of labor is defined by wages (w) and the cost of capital is defined by rent (r). This firm surely would like to maximize its profit. The SOC is fulfilled. What is the partial derivative of L with respect to r 642 (given that you find the partial derivative with respect to K first, then with respect to L) Sw 0 -0.5 0 -0.25 0.5

Answer 1

The answer to the above question is -0.25

It can be explained as follows:

L12-5- 니 , OL