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Fora mining firm, the cost function is C=0.01q(t)2, theprice of product p=10,thediscount rate is 0.2. The initial stock of mine is 1, i.e, X(0)=1.Assuming the mine will be completely extracted with one period, i.e., X(1)=0,whatis the optimal time path, X*(t), for the firm?
各位高人能不能帮我解解这道题,拜托了
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saiyingpun 查看完整内容
What do you mean by optimal time path?
I think the problem can be solved by Monte Carlo simulation as well.