A Manager Wishes to Predict the Annual Cost (Y)of an Automobile

question 42

Multiple Choice

A manager wishes to predict the annual cost (y) of an automobile based on the number of kilometres (x) driven.The following model was developed: y = 1,550 + .36x.If a car is driven 20,000 kilometres, the predicted cost is ___.

• A)7,200
• B)5,650
• C)8,750
• D)2,270
• E)6,750

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Definitions:

Production

The process of creating goods and services through the combination of labor, materials, and technology.

Absolute Advantage

Absolute Advantage refers to the capability of a country or entity to produce a good or service more efficiently than its competitors, using fewer resources.

Comparative Advantage

is an economic principle that describes how countries or individuals can gain by specializing in the production of goods they can produce more efficiently compared to others.

Tariffs

Taxes on imports or exports between sovereign states.