Suppose a firm can decrease the rate at which its variable cost increases by paying a larger fixed cost up front. Plot the two fixed cost curves in one diagram. Underneath this first diagram, plot the two average fixed cost curves in a second diagram. Plot the two variable cost curves in a third diagram.
Suppose a firm can decrease the rate at which its variable cost increases by paying a larger fixed cost up front. Plot the two fixed cost
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Underneath the third diagram, plot the two average variable cost
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