<p>The book I am working with (Rubinstein) states that in the case of the profit-maximizing producer, preferences are linear and the constraint is a convex set. Meanwhile, in the consumer model, preferences are convex and the constraint is a linear inequality.</p>
<p>I do understand the part of the consumer model, but I do not understand why he says that preferences of the producer are linear. How is it related to the isoquants?</p>

CC BY-SA 4.0
2023-03-06T09:41:07.880Z
Profits are a linear function of production plans.
Michael Greinecker
CC BY-SA 4.0
2023-03-07T13:21:29.713Z
The quote appears at the end of the 5th section of chapter 7 (Production) of Rubinstein's Lecture Notes in Microeconomic Theory. The first five sections of this chapter explain in detail how this claim is derived. Have you read these sections?
VARulle
<microeconomics><preferences><producer-theory>
What is the difference between preferences of the producer vs the consumer?
aliosha karamazov
# What is the difference between preferences of the producer vs the consumer?

(Asked by: username_0 on 2023-03-06)

The book I am working with (Rubinstein) states that in the case of the profit-maximizing producer, preferences are linear and the constraint is a convex set. Meanwhile, in the consumer model, preferences are convex and the constraint is a linear inequality.

I do understand the part of the consumer model, but I do not understand why he says that preferences of the producer are linear. How is it related to the isoquants?

**Tags:** microeconomics, preferences, producer-theory
> **Comments:**
> **username_1**: Profits are a linear function of production plans.  
> **username_2**: The quote appears at the end of the 5th section of chapter 7 (Production) of Rubinstein's Lecture Notes in Microeconomic Theory. The first five sections of this chapter explain in detail how this claim is derived. Have you read these sections?  

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## 0 answers

