The Linear Equation Y = a + BX Is Often

question 66

Multiple Choice

The linear equation Y = a + bX is often used to express cost formulas.Which of the following representations in this equation is correct?

• A) The b term represents variable cost per unit of activity.
• B) The a term represents variable cost in total.
• C) The X term represents total costs.
• D) The Y term represents total fixed costs.

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Definitions:

Aggregate Supply Curve

A visual diagram illustrating the overall amount of products and services that suppliers can and are ready to offer across varying price points within an economy.

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Farm Output

The total quantity of agricultural products produced by a farm over a specific period.

Federal Minimum Wage

The lowest legal wage that can be paid to workers in the United States, set by federal law.