Using the Iso-Profit Line Solution Method to Solve a Maximization

question 33

Multiple Choice

Using the iso-profit line solution method to solve a maximization problem requires that we:

• A) find the value of the objective function at the origin.
• B) move the iso-profit line away from the origin until it barely touches some part of the feasible region.
• C) move the iso-cost line to the lowest level that still touches some part of the feasible region.
• D) test the objective function value of every corner point in the feasible region.
• E) none of these

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Definitions:

Law of Effect

A psychological principle stating that behaviors followed by satisfying consequences tend to be repeated, while those followed by unpleasant consequences are less likely to be repeated.

Tone

The quality or character of sound.

Shock

A sudden and often intense disturbance of the mind, emotions, or sensibility due to a traumatic event or unexpected news.

Informational Value

The usefulness or relevance of data or information in decision-making or problem-solving processes.