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This document contains an economics problem set with multiple questions. Question 1 involves analyzing profit functions with capital (K), price (r), production (P), and technology (A) as variables. The optimal capital level (K*) is derived for different functional forms of f(K,A). Question 2 examines a production function with two inputs (K1 and K2) and derives the elasticity of substitution between the inputs. Question 3 shows the production function g(K1, K2) is concave, satisfying the conditions for a pr

Author

Stefan Spataru

Language

EN