MCQ
An iso-profit line represents:
  • A
    An infinite number of solutions all of which yield the same profit.
  • B
    An infinite number of solution all of which yield the same cost.
  • C
    An infinite number of optimal solutions.
  • D
    A boundary of the feasible region.

Answer

  1. An infinite number of solutions all of which yield the same profit.

Solution:

The graph of the profit function is called an iso profit line. It is called this because iso means same or equal and the profit anywhere on the line is the same.

So, an iso-profit lines represents an infinite number of solutions all of which yield the same profit.

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