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:

Partisanship

The strong support for a specific political party or agenda, often leading to a reluctance to compromise with political opponents.

Interest Group

An organization that advocates for the shared interests of its members, aiming to influence public policy and decision-making.

Government Policy

A course of action or principle adopted or proposed by a government body or leader.

Free-Rider Problem

A situation in which individuals benefit from resources, goods, or services without paying for them, leading to under-provision or depletion of those resources.