Figure 2-9 ​

question 254

Multiple Choice

Figure 2-9
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Commuter Rail Passengers by Frequency of Service
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-Refer to Figure 2-9. Which of the following conclusions should not be drawn from observing this graph?

• A)There is a positive correlation between the frequency of service and the number of passengers.
• B)When there are five stops per hour, there are approximately 200 passengers.
• C)More stops per hour is associated with more passengers per hour.
• D)No other factors besides the frequency of service affect the number of passengers.

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Definitions:

ATC

Average Total Cost; the total cost per unit of output incurred when producing goods or services.

AVC

Average Variable Cost, the cost that varies with the level of output, divided by the quantity of output produced.

Total Fixed Cost

The sum of all costs that do not change with the level of output produced; these costs are incurred even if production is zero.