Question

Homework: Chapter 11 Homework Score: 0 of 1 pt Concept: Graph Average Cost 19 of 20 (19 complete) HW Sco Consider the production of slices of pizza. The average total cost (ATC) and average fixed cost (AFC) of producing slices of pizza are illustrated in the graph to the right. ATC Use the four-point curve drawing tool to graph the average variable cost of producing one, two, three, and four thousand slices of pizza. Properly label this curve. Carefully follow the instructions above, and only draw the required objects. 16- 14 AFC Quantity of slices of pizza (in 1000s) Click the graph, choose a tool in the palette and follow the instructions to create your graph. All parts showing Clear All

Answer 1

ATC is the aggregate of AFC and AVC. Therefore, AVC could be found by subtracting AFC from ATC.

The following table is useful for finding AVC.

Units, thousands	ATC	AFC	AVC = ATC – AFC
1	21	16	5
2	15	10	5
3	17	8	9
4	24	7	17

Now the AVC is plotted based on the coordinates, (X, Y), as (1, 5), (2, 5), (3, 9), and (4, 17).

ATC 24 22- AVC 4,17) 14 12 10 (3,9) AFC 6 2- iu 2 5