If diamonds have a linear relationship with essentially no fixed costs, which co

ID: 2934924 • Letter: I

Question

If diamonds have a linear relationship with essentially no fixed costs, which costs more: a single 1-carat diamond or two

font size decreased by 4 one half12-carat

diamonds? Are these the same?

Choose the correct answer below.

If linear, the 1-carat diamond would cost more than the two

font size decreased by 4 one half12-carat

diamonds because of the absence of fixed costs.

If linear, these would cost the same amount in the absence of fixed costs.

Because there are no fixed costs, the prices cannot be determined from the information given.

If linear, the two

font size decreased by 4 one half12-carat

diamonds would cost more than the 1-carat diamond because of the absence of fixed costs.

If linear, these would cost the same amount in the absence of fixed costs.

As linear relation will become like something as

A = Bx

where A is the total cost and x = number of diamonds

So, both will cost the same as nuber of carats are used same and no fixed cost involved here.

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