Suppose That an Iso-Profit Line Is Given to Be X

question 42

Multiple Choice

Suppose that an iso-profit line is given to be X + Y = 10.Which of the following represents another iso-profit line for the same scenario?

• A)X + Y = 15
• B)X - Y = 10
• C)Y - X = 10
• D)2X + Y = 10
• E)none of the above

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Definitions:

Fixed Expenses

Financial obligations that stay uniform in spite of changes in manufacturing or sales figures, like leasing expenses, salaries for workers, and insurance outlays.

Operating Leverage

A financial concept that measures a company's fixed costs as a percentage of its total costs, indicating how a change in sales will impact profits due to fixed expenses.

Wire Strippers

A hand tool used to strip the insulation from electric wires.

Manufacturer

A person or company that makes goods for sale, typically involving machinery and labor.