The cost function y = 1000 + 5X:
A)is a straight line.
B)has a slope coefficient of 1000.
C)has an intercept of 5.
D)represents a fixed cost.

Question

Quizplus · Accepted Answer

The cost function is in the form y = mx + b, which is the equation of a straight line. The slope coefficient is 5, which means that for every increase in X by 1 unit, the cost increases by 5 units. The intercept of 1000 represents the fixed cost.

The Cost Function Y = 1000 + 5X