Question:
For a firm operating in a perfectly competitive market which of the following statements is CORRECT?
For a firm operating in a perfectly competitive market which of the following statements is CORRECT?
Updated On: Oct 1, 2024
- Profit function is convex and homogeneous of degree 1 in prices
- Profit function is concave and homogeneous of degree 1 in prices
- Profit function is convex but not homogeneous in prices
- Profit function is neither concave nor convex in prices
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The Correct Option is A
Solution and Explanation
The correct option is (A): Profit function is convex and homogeneous of degree 1 in prices
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