Which of the Following Statements Is Correct

question 217

Multiple Choice

Which of the following statements is correct?

• A) The slope of a straight line changes depending where on the line it is calculated.
• B) The slope of a curved line is not defined because it is impossible to calculate the slope along a curved line.
• C) A straight line that slopes upward moving to the right has a positive slope.
• D) Answers A and B are correct.
• E) Answers A and C are correct.

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Definitions:

MR

In economics, Marginal Revenue, referring to the increase in revenue that results from the sale of one additional unit of output.

MC

This stands for Marginal Cost, which is the cost of producing one additional unit of a product.

Maximizing Profits

The process of adjusting production and operational strategies to achieve the highest possible profit from business activities.

Shut-down Decision

The choice made by a firm about temporarily or permanently ceasing operations, often because operating costs exceed revenues at the current market price.