SFEcon always models production and utility tradeoffs in terms of a certain parameterization of the multidimensional hyperbola. Our supposition here is that this particular functional form is unique for its ability to determine, in mathematically closed-form, all the elements of an economic agent’s optimal operating position as described in our review of production theory.

Our explorations of the hyperbolic form will approach the condition of marginal revenues equaling marginal costs from several directions. This admittedly labored process should emphasize that optimality in the operations of an economic agent is a mathematically singular condition with several redundant specifiers. Each avenue of specification is set out in anticipation of its being used in some aspect of the price determinations that direct the dynamics of economic adjustment toward a general optimum.

Formal presentation of the hyperbola’s relation to production theory will be augmented by an empirical study of the hyperbolic production coefficients’ stability as descriptors of economic potential.

The presentation closes with a bit esoterica regarding other aspects of the hyperbola’s unique connection to macroeconomic dynamics.