Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 1 - Appendix - Using Graphs and Percentages - Exercises - Page 26: A.2

Answer

\$20 \$4 10 \$60 \$80

Work Step by Step

The vertical intercept is the cost when 0 Frisbee's are produced, \$20. $Slope=\frac{\Delta y}{\Delta x}=\frac{60-20}{10-0}=\frac{40}{10}=4$ Point b is the intersection of 10 Frisbees per day on the x-axis and \$60 on the y-axis. The cost of producing 15 Frisbees can be computed using the slope and a given point, for example 10 Frisbees at a cost of \$60. $4=\frac{F-60}{15-10}$ $4=\frac{F-60}{5}$ $4\times 5=\frac{F-60}{5}\times5$ $20=F-60$ $20+60=F-60+60$ $80=F$
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