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On Equilibrium of the Firm,what are the assumptions in Choice of Optimal Combination of Factors of Production

      

On Equilibrium of the Firm,what are the assumptions in Choice of Optimal Combination of Factors of Production

  

Answers


Wilfred
a) The goal of the firm is profit maximization;- that is, the maximization of the difference p=R-C
Where p is profits
R is revenue
C is costs

b) The price of output is given Px

c) The price of factors are given
W is the given wage rate
R is the given price of capital services (rental price of machinery).
Wilfykil answered the question on March 20, 2019 at 10:31


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