FIGURE 2-1 -On a Coordinate Graph with Y on the Vertical Axis

question 31

Multiple Choice

FIGURE 2-1
-On a coordinate graph with y on the vertical axis and x on the horizontal axis, suppose point A represents
Co-ordinates x = 2, y = 16) and point B represents coordinates x = 10, y = 4) . What is the slope of the straight line joining points A and B?

• A) 0.75
• B) -0.75
• C) 1.5
• D) -1.5
• E) -0.43

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Definitions:

Negative Economic Profit

A situation where a firm's total revenues are less than the sum of its explicit and implicit costs, indicating a loss in economic terms.

Perfectly Competitive

A market structure where many firms offer products that are similar and entry and exit from the market are easy, leading to price being determined by supply and demand.

AVC

Average Variable Cost, calculated by dividing total variable costs by the quantity of output produced.

Short-Run Cost Curve

A curve that shows how production costs change as output is increased or decreased, assuming some inputs are fixed.