ACCA PM · Chapter 6 · Question 8 of 10
When solving a two-product linear programming problem graphically, how is the optimal point identified?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) By moving the iso-contribution line away from the origin until it last touches the feasible region
Explanation
The iso-contribution line joins all combinations giving the same contribution and has a slope set by the products' relative contributions. Moving it outwards, parallel to itself, increases contribution; the last point of the feasible region it touches is the optimal solution, usually a vertex.
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