Which of the Graphs in the Figure Represents a Spring

question 31

Multiple Choice

Which of the graphs in the figure represents a spring that gets less stiff the more it is stretched?

• A) Graph a
• B) Graph b
• C) Graph c
• D) Graph d

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, remaining constant regardless of the business activity.

AVC

Average Variable Cost is the total variable costs divided by the quantity of output, representing the variable cost per unit of output.

MC = MR

An economic principle stating that to maximize profits, firms should produce up to the point where marginal cost equals marginal revenue.

MC = MR

The principle that profit maximization occurs when a firm's marginal cost (MC) equals its marginal revenue (MR).