Describe a general approach for determining the variable cost of any of the companies in this plot
What will be an ideal response?
Answer: The variable cost is reflected by the slope, so a rise over run formulation can be used. The leftmost edge of the graph represents x = 0 and the rightmost is a value of 20,000, which is a difference of 20,000. By subtracting the leftmost y-coordinate from each line from the rightmost, the rise can be computed. Then dividing the rise, or ?y, by the run, ?x, to determine the variable cost.
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