When Using the High-Low Method, What Data Point Can Be

question 337

Multiple Choice

When using the high-low method, what data point can be used to solve for the fixed cost component if months are on the X axis?

• A) The "high" month
• B) The "low" month
• C) Either the "high" or the "low" month
• D) Any month in the data set

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Definitions:

Economic Profits

Profits exceeding the total costs of production, including both explicit and implicit costs, representing gains above what could be earned in the next best alternative use of resources.

Pure Monopolist

A market participant who exclusively controls the supply of a particular good or service, without competition or substitute products.

ATC

Average Total Cost, which represents the per-unit cost of production, including both fixed and variable costs.