Multimarket production and exchange
Derive excess demand functions for the inputs and output of a
representative firm with the production function qhj=
(q*hj1)0.4
(q*hj2)0.2
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this topic, it's related to multimarket equilibrium -
Production and Exchange - Equilibrium of the Consumer -
Equilibrium of the hth Firm in the jth
Industry
Multimarket Production And Exchange Derive Excess Demand Functions For The Inputs And Output Of A Representative Firm Wi 1 (35.16 KiB) Viewed 17 times
Equilibrium of the hth Firm in the jth Industry = = Each firm combines inputs to produce a single commodity according to its prod. Function: Inj = fn;(qnj1, ......, anim) Where ānj = the output level of the hth firm in the jth industry and anjk k= the quantity of the kth good which the entrepreneur uses as an input. Both the s factors and (m – s) commodities serve as inputs. The entrepreneur 's profit is the competitive revenue less the cost of her inputs: Ttnj= Pifnjanju, qnjm) – Ex=1 Pk anjk Setting the partial derivatives wrt to each inputs equal to zero, im arthi - Pj aanjk - Pj aanjk aan). P = 0 k = 1, ...., m ) (9.23)
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