If Producer Choice Sets Are Convex and a Production Plan

question 4

True/False

If producer choice sets are convex and a production plan satisfies the condition that the (marginal) technical rate of substitution is equal (in absolute value) to the ratio of input prices, then the production plan is profit maximizing.

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Definitions:

Skill-based Pay

A compensation system that rewards employees for their skills and knowledge, rather than their job title or position.

Objective

Something that one's efforts or actions are intended to attain or accomplish; purpose; goal; target.

Measurable Performance

Refers to the ability to quantify or assess the effectiveness or output of an employee, project, or organization.

Skill-based Pay Plan

A compensation strategy where employees are paid based on the skills and knowledge they possess, rather than their job position or title.