Helpman, Elhanan (contributor); Antràs, Pol (contributor) - 2007
that the optimal investment levels
for a profit-maximizing firm are x
j
(i)=
¡
η
j
/c
j
¢
αR for j = h,m. Therefore in the … for
the intermediate input. The supplier of X
m
can be the firm’s employee or an outside agent. At this
point we put aside …
x
j
(i) for j = h,m and i ∈ [0,1],wherec
h
is borne by the final-good producer while c
m
is borne
by the supplier; (iii …