20-SEP-2007Charts and figures:•Table 6.1 – page 145•Table 6.2 – page 146•Table 6.3 – page 148•Figure 6.3 – page148.•Fixed costs: do not fluctuate with the level of production,•Variable costs are a function of the level of production.•TC = TVC + TFC (Total cost = total variable cost + total fixed cost).•Page 148 – figure 6.3:oThe average fixed costs are asymptotic to the axis. This means they go down as production increases.oTotal fixed costs do not fluctuate with the level of production.oThe Average Variable Costs have a U-shaped graph. Example: a classroom has to be composed of 25 students – not 5, not
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