predicted fixed cost
predicted variable cost
predicted cost
predicted price
Answer is Right!
Answer is Wrong!
The correct answer is: C. predicted cost
In a linear cost function, $y$ is the total cost, $a$ is the fixed cost, and $b$ is the variable cost per unit. The predicted cost is the total cost of producing a certain number of units, which is equal to $a + bx$, where $x$ is the number of units produced.
- Fixed cost is the cost that does not change with the number of units produced. For example, the cost of renting a factory is a fixed cost.
- Variable cost is the cost that changes with the number of units produced. For example, the cost of raw materials is a variable cost.
- Price is the amount of money that a customer pays for a product or service. The price is not necessarily equal to the cost of producing the product or service.
In conclusion, the correct answer is: C. predicted cost.