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Comparative statics
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===Application for profit maximization=== Suppose a firm produces ''n'' goods in quantities <math>x_1,...,x_n</math>. The firm's profit is a function ''p'' of <math>x_1,...,x_n</math> and of ''m'' exogenous parameters <math>q_1,...,q_m</math> which may represent, for instance, various tax rates. Provided the profit function satisfies the smoothness and concavity requirements, the comparative statics method above describes the changes in the firm's profit due to small changes in the tax rates.
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