The cost function y = 100 + 10X:
A)represents a fixed cost.
B)is a nonlinear.
C)has an intercept of 100.
D)has a slope coefficient of 100.

Question

Quizplus · Accepted Answer

The intercept of the cost function is 100, which means that even when X (the level of production) is zero, there is still a fixed cost of 100. The function has a linear relationship, with a slope coefficient of 10 indicating that the cost increases by 10 units for each additional unit of production.

The Cost Function Y = 100 + 10X