Suppose You Produce 10 Bikes a Day for a Total

question 347

Multiple Choice

Suppose you produce 10 bikes a day for a total cost of $1000. Total costs increase to $1100 when you produce 15 bikes. Finally, total costs increase to $1300 if you make 20 bikes. A graph showing the relationship between total costs and the number of bikes produced would be

• A) a negatively- sloped line that becomes steeper.
• B) a positively- sloped line that becomes flatter.
• C) a positively- sloped line that becomes steeper.
• D) a negatively- sloped line that becomes flatter.

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Definitions:

Accounts Payable

Liabilities of a business that are owed to creditors for goods and services purchased on credit.

Currency Swap

A financial agreement to exchange principal and interest in one currency for the same in another currency.

Derivative Instrument

A financial security whose value is derived from an underlying asset, index, or interest rate, often used for hedging or speculative purposes.

Futures Contract

A legal agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.