An Iso-Profit Line

question 57

Multiple Choice

An iso-profit line:

• A)can be used to help solve a profit maximizing linear programming problem.
• B)is parallel to all other iso-profit lines in the same problem.
• C)is a line with the same profit at all points.
• D)all of the above
• E)none of the above

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Definitions:

Production Possibilities

A curve depicting all maximum output possibilities for two goods, given a set of inputs consisting of resources and other factors.

Opportunity Cost

Forgoing possible gains from alternative paths when one path is chosen.

Farmer

An individual engaged in agriculture, raising living organisms for food or raw materials.

Comparative Advantage

The ability of a party to produce a particular good or service at a lower marginal and opportunity cost than another.