The Phone Bill for a Company Consists of Both Fixed

question 8

Multiple Choice

The phone bill for a company consists of both fixed and variable costs.Refer to the four-month data below and apply the high-low method to answer the question. $$\begin{array} { | l | r | r | } \hline & \text { Minutes } & \text { Total Bill } \\\hline \text { Tanuary } & 480 & \$ 4000 \\\hline \text { February } & 200 & \$ 2700 \\\hline \text { March } & 170 & \$ 2640 \\\hline \text { April } & 320 & \$ 2855 \\\hline\end{array}$$ What is the fixed portion of the total cost? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar.)

• A)$2107.20
• B)$1360
• C)$1893
• D)$2640

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Definitions:

Pure Monopolist

A market structure where a single seller controls the entire market for a product, with no close substitutes available, leading to significant control over price.

Price-output Behavior

The relationship between the price levels of products and the quantity produced or supplied in the market.

Marginal Revenue

The added financial gain achieved by the sale of one extra unit of a product or service.