Suppose That an Iso-Profit Line Is Given to Be X+Y=15

question 90

Multiple Choice

Suppose that an iso-profit line is given to be X+Y=15. What would be the profit made from producing 20X and 10Y?

• A) 15
• B) 30
• C) 0
• D) 20X and 10Y is not a feasible solution.
• E) Unable to determine

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Definitions:

Adam Smith

An 18th-century Scottish economist and philosopher known for his theories on free market economies and the concept of the "invisible hand."

Karl Marx

A 19th-century philosopher, economist, and political theorist known for his critical analysis of capitalism and his influence on the development of socialism and communism.

Variable Costs

Costs that change in proportion to the level of activity or volume of output in production, such as raw materials and labor.

Fixed Cost

Expenses that do not change with the level of goods or services produced by a business.