In the graph below, the area between the lines AC and OB after point 'E' represents:

Name: In the graph below, the area between the lines AC and OB after point 'E' represents:
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Question

Quizplus · Accepted Answer

The area between lines AC and OB after point 'E' represents operating income, which is the excess of revenue earned over the variable costs incurred to generate that revenue. It is also known as contribution margin, which is used to cover the fixed costs and ultimately generate profits. Therefore, option D is the correct answer.

In the Graph Below, the Area Between the Lines AC