The Following Table Shows Data for the Cost of Humidifiers

question 109

Multiple Choice

The following table shows data for the cost of humidifiers based on the number of humidifiers produced. Find a linear model for the cost C of producing x humidifiers.

• A) C = 1.05 + 87 x
• B) C = 1.05 x
• C) C = 87 + 1.05 x
• D) C = 87 + 20 x
• E) C = 87 x

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Definitions:

Purely Competitive Industry

An industry consisting of many buyers and sellers, where each firm is a price taker and the products are homogeneous.

Pure Monopoly Model

Describes a market structure in which a single seller sells a unique product in the market without any competition.

Productive Efficiency

Refers to a situation where an economy or entity cannot produce more of one good without affecting the production of another good, operating at the lowest possible cost per unit.

Allocative Efficiency

A state of resource allocation where goods and services are distributed according to consumer preferences, maximizing overall social welfare.