The correct answer is: C. slope coefficient
The high-low method is a simple method of estimating the linear cost function. It uses the highest and lowest values of the independent variable (usually volume) and the corresponding values of the dependent variable (usually cost) to calculate the slope coefficient.
The slope coefficient is the change in the dependent variable (cost) for a one-unit change in the independent variable (volume). It is calculated by dividing the change in the dependent variable by the change in the independent variable.
The high-low method is a quick and easy way to estimate the linear cost function, but it is not always accurate. It is best used when there is a strong linear relationship between the independent and dependent variables.
The other options are incorrect because:
- The linear coefficient is the intercept of the linear cost function. It is the value of the dependent variable when the independent variable is zero.
- The cost coefficient is the total cost of production. It is the sum of the fixed cost and the variable cost.
- The price coefficient is the change in the price of a product for a one-unit change in the quantity demanded.
I hope this helps! Let me know if you have any other questions.