+0  
 
0
566
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avatar+2353 

Could someone please show me the intermediate steps of rewriting this

$$\pi(p,w) = p(\frac{w}{pa})^{\frac{a}{a-1}}-w(\frac{w}{pa})^{\frac{1}{a-1}}$$

to this

$$\pi(p,w) = w(\frac{1-a}{a})(\frac{w}{ap})^{\frac{1}{a-1}}$$

 

reinout

reinout-g  Jul 1, 2014

Best Answer 

 #1
avatar+27229 
+10

pi(p,w)

Alan  Jul 1, 2014
 #1
avatar+27229 
+10
Best Answer

pi(p,w)

Alan  Jul 1, 2014
 #2
avatar+2353 
0

Thank you Alan,

I made some foolish mistake at

$$p*(\frac{w}{p*a})^{\frac{a}{a-1}} = p*(\frac{w}{p*a})^{\frac{a-1}{a-1}+ \frac{1}{a-1}}$$

 

Thank you 

reinout-g  Jul 1, 2014

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