Answer the Following Questions Using the Information Below:
Uninder Company

question 115

Multiple Choice

Answer the following questions using the information below:
Uninder Company uses the high-low method to estimate the cost function. The information for 2015 is provided below:
$\begin{array}{lll}&\text { Machine-hours } & \text { Labor Costs }\\\text { Highest observation of cost driver } & 550 & \$ 22,000 \\\text { Lowest observation of cost driver } & 250 & \$ 13,000\end{array}$
-What is the constant for the estimated cost equation?

• A) $5,500
• B) $13,000
• C) $16,500
• D) $22,000

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Definitions:

Long Run

A period of time in economics where all factors of production and costs are variable, allowing for full adjustment to changes.

Net Capital Outflow

The difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners over a specific time period, indicating the flow of capital out of a country.

Mexican Assets

Financial investments or physical properties located in Mexico, including stocks, bonds, real estate, and other forms of assets.

Pesos

The official currency of Mexico and several other Latin American countries.