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 these

Question

Quizplus · Accepted Answer

The iso-profit line solution method involves drawing a line with a fixed profit level (iso-profit line) and moving it away from the origin until it just touches the feasible region. The point of tangency gives the optimal solution. This method does not require finding the objective function value at the origin, moving an iso-cost line, or testing every corner point of the feasible region.

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