Determine Whether or Not the Function Is Linear $C ( x ) = 137 + 0.25 x$

question 297

Multiple Choice

Determine whether or not the function is linear. If it is, determine the slope and interpret it.
-The cost of a rental car for the weekend is given by the function C(x) $C ( x ) = 137 + 0.25 x$ , where x is the number of miles driven. Find and interpret the C-intercept of the graph of this function.

• A) 137; The cost of the rental car increases by $137 for each mile driven.
• B) 0.25; The cost of the rental car increases by $0.25 for each mile driven.
• C) 137; There is a flat rate of $137 to rent a car in addition to the charge for each mile driven.
• D) 0.25; There is a flat rate of $0.25 to rent a car in addition to the charge for each mile driven.

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Definitions:

Fixed Costs

Expenses that do not change with the level of output or sales, such as rent, salaries, and insurance, essential for budgeting and financial planning.

Marginal Costs

Marginal costs refer to the additional cost incurred by producing one more unit of a product or service.

Avoidable Costs

Costs that you get back if you shut down operations.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials or labor expenses.