When Single-Input Producer Choice Sets Are Non-Convex, the First Order

question 4

True/False

When single-input producer choice sets are non-convex, the first order condition of the profit maximization problem is neither necessary nor sufficient for identifying the profit maximizing production plan.

---

Definitions:

Money Income

The total amount of monetary earnings received by an individual or household, including wages, salaries, benefits, and income from investments.

Product Prices

The financial cost at which goods or services are offered to consumers in the market.

Budget Line

A graphical depiction of all possible combinations of two goods that a consumer can afford given their income and the prices of the goods.

Money Income

The total amount of monetary earnings received by an individual or household, including wages, salaries, and investment returns.