# Nominl Profit in SOE

Hi, everyone.
I would like to maximize firm’s profit in nonlinear SOE model. But when I use nominal profit, the IRF of real wage is werid. The nominal profit function is as follows:

where MC is nominal marginal.

And the auxiliary function is: (mc is real marginal cost)

1. What do you find weird?
2. mc is usually marginal costs, not profits.