QUESTION 10 Answer Question 10 and 11 using the diagram below. The diagram shows the daily average cost curve for a DVD

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Question 10 Answer Question 10 And 11 Using The Diagram Below The Diagram Shows The Daily Average Cost Curve For A Dvd 1 (54.1 KiB) Viewed 12 times

QUESTION 10 Answer Question 10 and 11 using the diagram below. The diagram shows the daily average cost curve for a DVD producer. Costs ID Explain what happens to total cost at output levels greater than Z. A. Total cost decreases at an increasing rate B. Total costs continue to rise but more steeply C. MC <AC, therefore AC rises D. MC <AC, therefore TC increases at a faster rate D Rises QUESTION 11 At output levels greater than Z, which one of the following correctly identifies what will happen to the cost? Average fixed cost Average variable cost Marginal cost A Falls B Falls C Rises Falls B. R8 000 C. R5 200 D. R4 000 Average Co Rises Output Rises Rises Rises Rises (4 Marks) Falls Rises (4 Marks) QUESTION 12 (4 Marks) For a luxury doughnut producer the average selling price is R20. The average variable cost is 40% of the selling price and its fixed cost per day is R2 000. Calculate total costs per day assuming it produces 400 doughnuts per day. A. R3 200