The Graph of Is Shown in the Figure Below

question 8

Multiple Choice

The graph of is shown in the figure below. ​ ​
If the point P (with coordinates (a, b) ) is on the graph, how are a and b related?
​

• A) ​
• E) There is no relation.

---

Definitions:

Linear Marginal Cost

A situation where the additional cost of producing one more unit of output is constant, regardless of the quantity produced.

Sunk Costs

Expenses that have already been incurred and cannot be recovered or refunded.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance.

Explicit Costs

Input costs that require an outlay of money by the firm