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An iso-profit line represents?


An iso-profit line represents?

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An iso-profit line represents?

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  • It represents all combinations of the products which would yield the same value of profits.
  • A line that is made up of labor and total output for that labor, that produces the same amount of profit for the firm is called an isoprofit line.
  • The same output can be produces by different combinations of inputs, a concept that is best illustrated by an isoprofit line.
  • Iso means the same or equal. An isoprofit line is parellel to other profit lines in the same ptoblem, and can be used by a firm to determine profit maximizing point.



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Answered on June 21, 2020 7:47 am

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