A Graph Shows the Price of a Kilo of Cucumbers

question 121

Multiple Choice

A graph shows the price of a kilo of cucumbers on the vertical axis and the quantity of new cars sold by Honda on the horizontal axis. The price of a kilo of cucumbers remains constant as the quantity of new cars sold increases. The graph of these data is a

• A) horizontal line.
• B) negatively sloped line.
• C) curve with a maximum.
• D) vertical line.
• E) positively sloped line.

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Definitions:

Marginal Cost

The cost of producing one additional unit of a product or service, used in economics to determine the optimum production level.

Output

The quantity of goods or services produced by a firm, sector, or economy.

Total Variable Costs (TVC)

TVC refer to the costs that vary directly with the level of output produced, including expenses such as materials and labor.

Marginal Cost

The cost of producing one additional unit of a product.