## What is Isoprofit line method?

In case you don’t remember, when a line is in standard form like P = Ax + By, the slope is -A/B. 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.

What is a feasible solution in linear programming?

Definition: A feasible solution to a linear program is a solution that satisfies all constraints. Definition: An optimal solution to a linear program is the feasible solution with the largest objective function value (for a maximization problem).

How do Isoprofit curves work?

A curve showing the combinations of two or more variables that generate the same level of profit for a firm. In a duopoly model an isoprofit curve can depict combinations of output levels of the two firms that lead to a constant level of profit for one of the firms.

### What is an Isocost line an Isoprofit line?

Isoprofit / Isocost lines: Each point on this line has the same value of Z which is c1. Each such line for which the value of the objective function stays the same is called an isoprofit or an isocost line for maximization and minimization problems respectively.

What is an isocost line an Isoprofit line?

What is the reason for the difference in the shape of the Isoprofit curves between the two firms?

What is the reason for the difference in the shape of the isoprofit curves between the two firms? Price and expense change. Figure 7.11 depicts the demand curve for Beautiful Cars, together with the marginal cost and isoprofit curves.

#### What is feasible and optimal?

A solution (set of values for the decision variables) for which all of the constraints in the Solver model are satisfied is called a feasible solution. An optimal solution is a feasible solution where the objective function reaches its maximum (or minimum) value – for example, the most profit or the least cost.