Suppose a Manager's Preferences Depend Only on Profit

question 130

Multiple Choice

Suppose a manager's preferences depend only on profit.Such a manager will then have an indifference curve that:

• A) is tangent to the profit curve somewhere between quantities of 0 and 2.5.
• B) is tangent to the profit curve somewhere between quantities of 2.5 and 5.
• C) is tangent to the profit curve at a quantity exactly equal to 2.5.
• D) intersects the profit curve at a quantity exactly equal to 5.

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Definitions:

Sales Manager

A professional responsible for leading and directing a sales team to meet or exceed sales targets.

Manufacturing Costs

The total expenses involved in the process of producing goods, including raw materials, labor, and overhead costs.

Financing

The process of providing or obtaining the funds necessary for investment, expansion, or operations.

Repayments

Amounts of money paid back to lenders or creditors in partial or full settlement of a loan or debt.