enter image description here

Hello. I'm graduate student in Japan.

This time, what I want to ask is how to solve the profit maximization problem using the image production function and derive the demand function.

This production function is a Cobb-Douglas production function, but it is also a CES type, and it is difficult for me to calculate.

Also, the paper states that the demand function has the same shape as a general monopolistic competition or an incomplete competition model.

So, the shape of the demand function is as follows.


where $P_n$ is final good price and $P_n(j)$ are intermediate goods (sector absorption) price

Thank you for answering.


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