Question: =+11.5* When we discussed optimal behavior for consumers in Chapter 6, we illustrated that there may be two optimal solutions for consumers whenever there are

=+11.5* When we discussed optimal behavior for consumers in Chapter 6, we illustrated that there may be two optimal solutions for consumers whenever there are non-convexities in either tastes or choice sets. We can now explore conditions under which multiple optimal production plans might appear in our producer model.

A. Consider only profit-maximizing firms whose tastes (or isoprofits) are shaped by prices.

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