APPENDIX B

It is shown that the profitability i is given by (8) and (9).

From (1) we have

Image: Formula (B1)

From (7) and (B1) follows that

Image: Formula (B2)

Comparing the right-hand side of (B2) and the left-hand side of (A2) it is easy to see, after replacing x by g in (A2), that analogously with (A9) it follows from (B2) that

Image: Formula (B3)

After some algebra (B3) can be written as

Image: Formula (B4)

Denoting

Image: Formula (9)

(B4) becomes

Image: Formula (B5)

Solving i from (B5) gives (8).


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