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Graph 22-7
-Refer to Graph 22-7.Assume that the consumer depicted in the graph has an income of $20.The price of Skittles is $2 and the price of M&Ms is $2.This consumer will choose to optimise by consuming:
Average Variable Cost
The variable cost per unit of output, calculated by dividing total variable costs by the quantity of output produced.
Output
The quantity of goods or services produced in a given time period by a firm, industry, or country.
Total Variable Cost
The sum of all costs that vary with output level, including expenses such as labor and raw materials, but not fixed costs like rent.
Output
The total amount of goods or services produced by an individual, firm, or country.
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