For Each of the Following Situations, Draw a Graph That

question 83

Essay

For each of the following situations, draw a graph that best describes the cost behavior pattern. The vertical axis represents costs, and the horizontal axis represents volume.
a.Direct materials per unit
b.Depreciation expense on a building per unit
c.An employee paid $50 per hour with a guaranteed salary of $1,000 per week
d.A consultant paid $100 per hour with a maximum fee of $2,000
e.Salaries of teachers where each teacher can handle a maximum of 15 students

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Definitions:

Gains From Trade

The benefits that entities receive from the voluntary exchange of goods or services, typically leading to an improvement in overall welfare.

Street Lighting

A service provided, often by local governments, that involves the installation and maintenance of public lighting along streets and in public areas for safety and visibility.

Marginal Benefit

The additional benefit derived from consuming or producing one more unit of a good or service.

Marginal Cost

The cost involved in generating an extra unit of a product or service.