Answer to Question #77855 in Microeconomics for kelvin

Question #77855
using the profit function; π=P²/√wr, show that the profit function is positively and linearly homogeneous in both and output prices
1
Expert's answer
2018-06-06T09:04:08-0400
Profit in the accounting sense of the excess of revenue over cost is the sum of two components: normal profit and economic profit.
Homogeneous describes things that are all of the similar kind.

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