It Is Not Sufficient for Profit Maximization That a Production

question 33

True/False

It is not sufficient for profit maximization that a production plan has all marginal revenue products equal to input prices -- because it must also be the case that the (marginal) technical rate of substitution is equal to the ratio of input prices (in absolute value).

---

Definitions:

Compound-Interest

Interest calculated on the initial principal, which also includes all of the accumulated interest of previous periods of a deposit or loan.

Guaranteed Interest Rates

Interest rates promised to remain constant over a defined period, often associated with savings instruments like fixed deposits.

Maturity Value

The amount payable to an investor at the end of a fixed term investment.

Financial Planning

The process of creating strategies for managing finances to achieve personal financial goals.