The Given Graph Shows the Cost C, in Thousands of Dollars

question 42

Multiple Choice

The given graph shows the cost C, in thousands of dollars, of a production run for a product when x machines are used. Estimate the company's fixed cost of production to the nearest thousand dollars, and determine the number of machines that will result in maximum cost for the company. ​ ​

• A) fixed production cost: $6,000 Maximum cost when 4 machines used
• B) fixed production cost: $9,000 Maximum cost when 4 machines used
• C) fixed production cost: $5,000 Maximum cost when 4 machines used
• D) fixed production cost: $6,000 Maximum cost when 6 machines used
• E) fixed production cost: $5,000 Maximum cost when 6 machines used

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Definitions:

Hindsight Bias

The inclination to believe, after an event has occurred, that one would have predicted or expected the outcome.

Stereotype

A widely held but oversimplified and generalized belief about a particular category of people or things.

Negative Emotion

Emotional states considered to be unpleasant or harmful, such as sadness, anger, fear, and jealousy.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially based on race, age, or sex.