Speedy Couriers Documented the Miles Driven and Total Vehicle Costs

question 10

Multiple Choice

Speedy Couriers documented the miles driven and total vehicle costs for the past five months as follows:
$$\begin{array} { l c c } & \text { Number of miles } & \text { Total vehicle costs } \\\hline \text { January } & 800 & \$ 1095 \\\text { February } & 1000 & 1440 \\\text { March } & 750 & 1200 \\\text { April } & 900 & 1380 \\\text { May } & 1100 & 1410\end{array}$$
-Using the high/low method,what is the cost equation to predict total vehicle costs?

• A) Y = $52.50 + $1.67x
• B) Y = $255 + $1.05x
• C) Y = $285 + $1.725x
• D) Y = $750 + $.60x

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Definitions:

Marginal Revenue

The additional revenue generated from selling one more unit of a good or service.

Marginal Costs

The rise in overall expenses resulting from the production of an additional unit.

Total Variable Cost

The sum of expenses that vary directly with the level of output, rephrasing it as the aggregate of costs that fluctuates in tandem with production volume.

Short-Run Supply Curve

A graphical representation showing the quantity of goods that producers are willing and able to sell at different prices, over a short period.