Unformatted text preview: X is the number of miles traveled in the day. 3. Contract Cost Function 1 2 3 Fixed Mixed Variable SOLUTION EXHIBIT 1017 Plots of Car Rental Contracts Offered by Pacific Corp. 1018 (20 min.) Various costbehavior patterns. 1. K 2. B 3. G 4. J Note that A is incorrect because, although the cost per pound eventually equals a constant at $9.20, the total dollars of cost increases linearly from that point onward. 5. I The total costs will be the same regardless of the volume level. 6. L 7. F This is a classic stepcost function. 8. K 9. C...
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 Fall '09
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 Derivative, linear cost function, $9.20

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