Suppose the Feasible Region Has Five Corners, at These Points

question 68

Multiple Choice

Suppose the feasible region has five corners, at these points: (1, 1) , (1, 7) , (5, 7) , (5, 5) , and (4, 3) . If the profit formula is P = $5x  $2y, which point maximizes the profit?

• A) (1, 7)
• B) (5, 7)
• C) (5, 5)
• D) (4, 3)

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Definitions:

Average Tax Rate

The proportion of total income that is paid as taxes, calculated by dividing the total amount of taxes paid by the taxpayer's total income.

Horizontal Equity

The principle that individuals with similar income or assets should pay the same amount in taxes.

Vertical Equity

A principle in taxation where taxpayers with a greater ability to pay, pay more in taxes, demonstrating a progressive tax system.

Small Economy

An economy that is limited in size, characterized by a smaller population, lower GDP, and less impact on international markets compared to larger economies.