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Topic: Q3.14,Q3.15,Q3.27
Conf: Chapter 3, Theory of the Firm, Msg: 13492
From: allen long (allenlong@wisc.edu)
Date: 10/13/2003 09:41 PM
Q3.14,Q3.15,Q3.27 allen long allenlong allenlong@wisc.edu
3.14 and 3.15 are ones that are quite important. I'm not going to write out the answer here, but I will tell you that Varian works out both of these problems in, I believe, the first 25 pages of his text.
For 3.27 hints
a) Shephard's Lemma
b)Think about how your answers in part a above change for w0 and w'.