Explain how a bank manager uses Core Principles 1, 2, and 3 (time has value, risk requires compensation, and information is the basis for decisions) to select assets and issue liabilities consistent with shareholder preferences.

Afirm’s production function is represented by q(m,r) = 4m 3/4r1/3, where q denotes output, m raw materials, and r robots. the firm is currently using 6 units of raw materials and 12 robots. according to the mrts, in order to maintain its output level the firm would need to give up 2 robots if it adds 9 units of raw materials. (a) true (b) false