5. Draw the following cost behavior situations. Show Total costs on the Y-axis and the cost driver on the X-axis: (NEAT free hand sketches are fine and be sure to label the axes) a) Dr Tebbe decides to pay faculty a fixed wage upto 50 students per class and then Rs 100 per student after that. b) FC Bus service decides to charge a declining rate per kilometer for students using the service. c) Salaries of ustaads at Nirala where 1 ustaad is needed if upto 100 hours are worked in production, 2 ustaads are needed from 101-200 hours and 3 ustaads are needed for production between 201-300 hours.

5. Draw the following cost behavior situations. Show Total costs on the Y-axis and the cost driver on the X-axis: (NEAT free hand sketches are fine and be sure to label the axes) a) Dr Tebbe decides to pay faculty a fixed wage upto 50 students per class and then Rs 100 per student after that. b) FC Bus service decides to charge a declining rate per kilometer for students using the service. c) Salaries of ustaads at Nirala where 1 ustaad is needed if upto 100 hours are worked in production, 2 ustaads are needed from 101-200 hours and 3 ustaads are needed for production between 201-300 hours.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 21P

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