-If We Use the Numbers in the Above Table to Draw

question 252

Multiple Choice

-If we use the numbers in the above table to draw a graph, with the price on the vertical axis and the quantity on the horizontal axis, the line relating price and quantity has a slope of

• A) 0.8.
• B) -8.0.
• C) -1.25.
• D) 8.0.

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity, such as materials and labor.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

After-tax Profit

The net income remaining after all taxes have been deducted from total revenue.

NAICS Codes

North American Industrial Classification System codes that use numerical values to identify industries.