Question

Graph: TB and TC curves. Both the TB and TC curves are graphed over quantities (Q). The start at Q = 0 and intersect at the quantity indicated by point G. The tangent line at point B is parallel to TC.

Reference: TB and TC Curves

The quantity at point ____ indicates the optimal quantity.

	A.	A
	B.	G
	C.	D
	D.	C

If a relation between X and Y is provided by the equation y = 30 + –2.2 x, then we know that there is a _____ relationship between the variables X and Y.

	A.	non-linear
	B.	linear
	C.	constant
	D.	negative
	E.	Only A and C
	F.	Only B and D
	G.	Only B, C, and D

Answer 1

Graph is not provided. Assuming this is the graph-

1. The correct option is option D- point C.

At point C, the difference between Total Benefits (TB) and Total Cost (TC) is highest, meaning net benefit is highest at this point and hence thats the optimal point.

2. The correct option is F- B and D.

The equation y= 30 + –2.2x tells us that as x increases y decreases, and vice versa. This means there is a negative relationship. It also tells us that for each 1 increase in y, x decreases by 2.2, meaning there is a linear relationship.