Practice question · Match the pairs
Match each condition to what it establishes.
- Corner of the feasible range
- Optimum may hide where no derivative vanishes
- Candidate point: no marginal gain remains
- The candidate is a local maximum
- Producing more still adds profit
Hints
- One condition finds candidates; the other sorts them.
- Boundaries need checking separately from interior points.
Show the answer
- → Candidate point: no marginal gain remains
- → The candidate is a local maximum
- Corner of the feasible range → Optimum may hide where no derivative vanishes
- → Producing more still adds profit
Why
FOC nominates, SOC classifies, boundaries lurk, and the margin’s sign gives the direction to walk.
Practise Optimization in Economics
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