Refer to Figure 11-2 below to answer the following questions.

a. Identify the curves in the diagram.

A ________________________________________

B ________________________________________

C ________________________________________

b. What is the numerical value of fixed cost when the quantity of output = 10?

c. What is the numerical value of variable cost when the quantity of output = 10?

d. What is the numerical value of total cost when the quantity of output = 10?

e. What is the numerical value of average fixed cost when the quantity of output = 10?

f. What is the numerical value of average total cost when the quantity of output = 10?

g. On the graph identify the area that represents the total variable cost of production when the quantity of output = 10.

h. On the graph identify the area that represents the fixed cost of production when the quantity of output = 10.

 

Transcribed Image Text:

Figure 11-2 Costs per unit $22 7 0 10 + B Quantity of output Figure 11-2 Costs per unit $22 7 0 10 + B Quantity of output