An iso- profit curve shows all of the values of firm ones output that produce the same level of profit as a function of
A)the other firm's output
B)input prices
C)the other firm's price
D)output prices

Question

Quizplus · Accepted Answer

An iso-profit curve shows the combinations of outputs of two firms that produce the same level of profit for Firm 1. Therefore, the iso-profit curve is a function of the other firm's output, as it affects the market price and the demand for Firm 1's product. Input prices, the other firm's price, and output prices all affect the profit levels of Firm 1, but they are not the determinants of the iso-profit curve.

An Iso- Profit Curve Shows All of the Values of Firm