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6 Theory of the Firm

  • Thorsten Hens
  • Marc Oliver Rieger
Chapter
  • 435 Downloads
Part of the Springer Texts in Business and Economics book series (STBE)

Abstract

\(f = \left \{(y_0, y_1) \mid y_1 \leq \sqrt {-y_0}, \; y_0 \leq 0 \right \}\)
  1. (i)

    f is closed: defined by ≤ 0

     
  2. (ii)

    f convex: since Open image in new window is concave

     
  3. (iii)

    y0 < 0, y1 > 0

     
  4. (iv)

    y0 = 0 ⇒ y1 = 0

     
  5. (v)

    max production is \(\sqrt {w_0}\)

     

Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2019

Authors and Affiliations

  • Thorsten Hens
    • 1
  • Marc Oliver Rieger
    • 2
  1. 1.Department of Banking and FinanceUniversity of ZurichZürichSwitzerland
  2. 2.Department of Business AdministrationUniversity of TrierTrierGermany

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