A Car Lease Payment Is Computed Based Solely on the Number

question 4

Multiple Choice

A car lease payment is computed based solely on the number of miles driven.This is an example of a ________.

• A) variable cost
• B) mixed cost
• C) step cost
• D) stair cost

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Definitions:

Income

Represents the money received, especially on a regular basis, for work or through investments.

Price of X

The amount of money required to purchase a specified amount of good or service 'X'.

Price of Y

The cost or value attributed to a good or service denoted by 'Y', often set by market demand and supply or by the seller.

Utility Function

A mathematical representation that ranks preferences or satisfaction levels of a consumer for different bundles of goods.