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

question 28

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 the above

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Definitions:

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Pre-contractual Problem

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