Given the Cost Formula Y = $17,500 + $4X, at What

question 74

Multiple Choice

Given the cost formula Y = $17,500 + $4X, at what level of activity will total cost be $42,500?

• A) 10,625 units
• B) 4,375 units
• C) 6,250 units
• D) 5,250 units

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Definitions:

Excise or Sales Taxes

Taxes imposed on the sale of specific goods and services, often included in the price paid by the consumer.

Tax Revenue

The revenue obtained by governments from taxes.

Economic Factors

Variables such as inflation, interest rates, economic growth, and unemployment that influence the performance of an economy.

Elasticity of Supply

The responsiveness of the quantity supplied of a good to a change in its price.