a. When 0 units are sold, the revenue is 3 million - This interpretation would typically occur in a business or economic context. It means that even without selling any units, the company or person still has a fixed revenue of 3 million. This could be due to other sources of income, such as investments or fixed contracts.
b. When 3 units are sold, the revenue is 0 million - This interpretation would also typically occur in a business or economic context. It means that for every 3 units sold, the revenue earned is 0 million. This implies that the cost of production, marketing, or other expenses is equal to the revenue generated from selling those units. In this scenario, the business would not make a profit from each unit sold.
What does the y-intercept (0,3) mean in context?
a.When 0 units are sold, the revenue 3 million
b.When 3 units are sold, the revenue is 0 million
1 answer
1 answer