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).
Correct Answer:
Verified
Correct Answer:
Verified
Q24: Profit functions are homogeneous of degree zero.
Q25: Profit is constant along an isoquant.
Q26: There are two economically meaningful ways of
Q27: Consider a firm that uses labor and
Q28: If production technologies are homothetic, all cost-minimizing
Q29: Suppose capital and labor are perfect complements
Q30: Output prices are irrelevant for a firm
Q31: We have worked a lot with homothetic
Q32: All economically efficient production plans are technologically
Q34: Changing the labels on isoquants without changing