# Questions tagged [profit-maximization]

A modelling approach in which firms' plants are chosen via maximizing a profit function under a demand or resource limit restriction.

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### separability of a profit funtion in outputs and prices [closed]

I want to know how I can show that profit function is separable in factor prices and output prices. I know that the function is homogeneous of degree alpha. I started with the maximization problem ...
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### Static Profit Maximization Short Run Shut Down Decision

In considering whether to stay open or shut down in the short run, a firm compares its revenues to its “avoidable costs”. We usually think of these avoidable costs as variable costs, but of course ...
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### Solving for profit function $\pi (w,p)$ given the output of production function $f(z) = \sqrt{2z_1 + 3z_2}$

Solving for profit function $\pi (w,p)$ given the output production function $f(z) = \sqrt{2z_1 + 3z_2}$. I approached this problem by trying to solve the $p\nabla f(z) = w$. This is derived from ...
Consider a firm that has a production function given by $F(x)$, where $x \in \mathbb{R}^n_+$. Assume that the function $F$ is strictly increasing in each argument, concave, twice continuously ...