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The133rmproducingvarietywsolvesthefollowingmaximizationproblemmaxpwpwxwpwabxwpww6wherexwisafunctionofpw The133rstorderconditionisxwpw

The…rmproducingvarietywsolvesthefollowingmaximizationproblem:maxp(w)p(w)x(w)(p(w))(a+bx(w)(p(w))w(6)wherex(w)isafunctionofp(w). The…rstorderconditionisx(w)+p(w)

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