The Cost Function Y = 100 + 10X

question 113

Multiple Choice

The cost function y = 100 + 10X:

• A)represents a fixed cost.
• B)is a nonlinear.
• C)has an intercept of 100.
• D)has a slope coefficient of 100.

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Definitions:

Profit-Maximizing Output

The level of production at which a firm achieves the highest possible profit.

Efficient Scale

The level of production at which a firm or an industry can produce at the lowest average cost.

Maximum Profit

The highest possible financial gain a business can achieve from its operations, after all costs and expenses have been deducted.

Efficient Scale

The level of production at which a company can produce its goods or services at the lowest average cost per unit, achieving economies of scale.