Level Curves of F(x, Y)are Shown in the Figure Below

question 23

Multiple Choice

Level curves of f(x, y) are shown in the figure below.(Darker shades indicate regions with lower levels.) Is the point (-1, 2) a local maximum, a local minimum, or a saddle point of f, or is it none of these?

• A)Saddle point.
• B)Local minimum.
• C)Local maximum.
• D)None of these.

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Definitions:

Long-Run

In economics, a period in which all factors of production and costs are variable, allowing for full adjustment to change.

Maximize Profits

A strategy or objective of firms to achieve the highest possible financial gain by optimizing production and sales, while minimizing costs.

Long-Run Cost Function

Describes the minimum cost at which a firm can produce any given level of output when all inputs, including capital, are variable.

Positive Output

The result of production processes that lead to an increase in the quantity of goods or services produced.