Abstract
\(f = \left \{(y_0, y_1) \mid y_1 \leq \sqrt {-y_0}, \; y_0 \leq 0 \right \}\)
-
(i)
f is closed: defined by ≤ 0
-
(ii)
f convex: since
is concave -
(iii)
y 0 < 0, y 1 > 0
-
(iv)
y 0 = 0 ⇒ y 1 = 0
-
(v)
max production is \(\sqrt {w_0}\)
is concaveThis is a preview of subscription content, log in via an institution.
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Hens, T., Rieger, M.O. (2019). 6 Theory of the Firm. In: Solutions to Financial Economics. Springer Texts in Business and Economics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-59889-4_14
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DOI: https://doi.org/10.1007/978-3-662-59889-4_14
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Online ISBN: 978-3-662-59889-4
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