Hello, I am stuck with the problem of a profit maximization and I would be really happy for some help
I have a profit maximization problem of a farmer (see the picture attached). I am expected to calculate FOC, then differentials and then to calculate the system of 3 equations with 3 unknowns and 1 parameter P1.
I calculated FOC as well as differentials (see the second picture attached), but I am struggling with the next step. I think I might have made a mistake in FOC or differentials.
Please could you help me?
Thank you very much.
I have a profit maximization problem of a farmer (see the picture attached). I am expected to calculate FOC, then differentials and then to calculate the system of 3 equations with 3 unknowns and 1 parameter P1.
I calculated FOC as well as differentials (see the second picture attached), but I am struggling with the next step. I think I might have made a mistake in FOC or differentials.
Please could you help me?
Thank you very much.
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