Local versus Global Profit Maximization: The Case of Discrete Concave Production Functions
نویسنده
چکیده
In this paper we show that for discrete concave functions, a local maximum need not be a global maximum. We also provide examples of discrete concave functions where this coincidence holds. As a direct consequence of this, we can establish the equivalence of local and global profit maximizers for an equivalent well-behaved production function that is generated by a (not necessarily discrete concave) production function.
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