For the product-product decision in the competitive case, the revenue-maximization criterion is based on:

Question

Quizplus · Accepted Answer

The revenue-maximization criterion is based on the Marginal Rate of Product Substitution (MRPS) and product price ratio. This means that the company should choose the combination of products that will allow them to increase their revenue the most, by considering the relative prices of the products and how easily they can be substituted for each other by consumers. The other options mentioned, such as the price of inputs and the Production Possibilities Frontier, are not directly related to the revenue-maximization decision for product selection.

For the Product-Product Decision in the Competitive Case, the Revenue-Maximization