Suppose and

question 30

True/False

Suppose
and
are quadratic forms on

. If subject to the constraint
the maximum values of
and
are
and
respectively, then subject to the constraint
the maximum value of
is

.

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Definitions:

Marginal Revenue

The supplementary income a company accrues from the sale of one additional unit of a product or service.

ATC

Average Total Cost, the total cost of production divided by the number of units produced, representing the average cost per unit of output.

Profit-Maximizing Rule

A principle that states a firm reaches its highest profit when its marginal cost equals its marginal revenue.

Marginal Revenue

The revenue increase from the sale of one more unit of a product or service.