In the formula y = a + bX,a represents
A)mixed cost.
B)variable cost.
C)total cost.
D)fixed cost.

Name: In the formula y = a + bX,a represents A)mixed cost. B)variable cost. C)total cost. D)fixed cost.
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Quizplus · Accepted Answer

In the formula y = a + bX, 'a' represents the fixed cost. This is because 'a' is the intercept or the vertical distance between the line and the Y-axis when X is zero. Fixed costs are costs that do not change with the level of output, hence it is represented by the constant 'a'.

In the Formula Y = a + BX,a Represents