Figure 13-12
-Figure 13-12 above is drawn to show that variable costs are smaller than fixed costs when the firm sells
A) 400 pictures.
B) 900 pictures.
C) 1,000 pictures.
D) 1,200 pictures.
E) There is not enough information to determine this.

Question

Figure 13-12
-Figure 13-12 above is drawn to show that variable costs are smaller than fixed costs when the firm sells
A) 400 pictures. 
B) 900 pictures. 
C) 1,000 pictures. 
D) 1,200 pictures. 
E) There is not enough information to determine this.

Quizplus · Accepted Answer

Variable costs are smaller than fixed costs when the firm sells 400 pictures because the total variable cost at that point is $400, while the total fixed cost is $500.

Figure 13-12 -Figure 13-12 Above Is Drawn to Show That Variable Costs