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 these

Question

Quizplus · Accepted Answer

An iso-profit line represents all the combinations of X and Y that yield the same profit. In this case, X + Y = 10 represents all the combinations of X and Y that yield a profit of 10. To find another iso-profit line, we need to find another equation that represents all the combinations of X and Y that yield a profit of 10. A) X + Y = 15 does not represent the same profit level, so it is not correct. B) X - Y = 10 and C) Y - X = 10 represent lines with different slopes, so they do not correspond to the same profit level. D) 2X + Y = 10 is twice the slope of the original line, so it does not correspond to the same profit level either. Therefore, the answer is A) X + Y = 15, since it represents the same profit level as X + Y = 10.

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