Question

The cost of catering a dinner is $11.95 per person plus $25 for delivery and setup. Which statement is true about the graph of the function that represents the average cost per person?
The horizontal asymptote y = 0 represents that the cost per person approaches $0 as the number of people increases.
The horizontal asymptote y = 11.95 represents that the cost per person approaches $11.95 as the number of people increases.
The vertical asymptote x = 0 represents that the cost per person approaches $0 as the number of people increases.
The vertical asymptote x = 11.95 represents that the cost per person approaches $11.95 as the number of people increases.

Answer 1

The correct statement is: "The horizontal asymptote y = 11.95 represents that the cost per person approaches $11.95 as the number of people increases."

Reason: Average cost per person = (11.95n + 25)/n = 11.95 + 25/n. As n → ∞, 25/n → 0, so the graph approaches y = 11.95.