Question: Symmetric quadratic programming (SQP) is suitable for analyzing monopolistic and monopsonistic behavior. Assume that the entrepreneur is a perfectly discriminating monopolist and a perfectly discriminating monopsonist. Given final commodity prices p = c - Dx and input prices Ps = g + Gs, where D is a symmetric positive semidefinite matrix and G is a symmetric positive definite matrix, and given that the entrepreneur operates a linear technology A,
(a) Set up the appropriate symmetric quadratic programming specification and describe your work in detail.
(b) Derive the dual specification and give an accurate economic interpretation of each component.
(c) State the problem as an LCP specification.