To analyze the graphs in the image, let's identify which graph represents each cost behavior:
1. Total Variable Cost:
Total variable costs change with the level of production. As production increases, total variable costs increase.
Graph B shows a line that starts at the origin and increases with the total units produced, representing total variable cost.
- Answer: b. Graph B
2. Total Fixed Cost:
Total fixed costs remain constant regardless of the level of production. They do not change with the total units produced.
Graph A shows a horizontal line indicating that costs remain constant as total units produced change, representing total fixed cost.
- Answer: a. Graph A
3. Total Mixed Cost:
Total mixed costs consist of both fixed and variable components. They increase as production increases, but not starting from zero.
Graph C shows a line that starts at a positive value on the y-axis and increases with the total units produced, indicating a combination of fixed and variable costs, representing total mixed cost.
- Answer: c. Graph C
To summarize:
- Total variable cost: b. Graph B
- Total fixed cost: a. Graph A
- Total mixed cost: c. Graph C
