a. Construct a diagram of the cost function, where you have the quantity on the X-axis and the cost on the Y-axis. b. How do you find the fixed cost, FC, from the information in the graph? Draw a line indication the fixed cost at different quantities produced. c. How do you find the variable cost, VC? Draw it. d. Draw a new graph below the first one. Draw the marginal cost curve, MC, and the curves for average total cost, ATC, and the average variable cost, AVC.

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Financial Statements

Financial statements (or financial reports) are the formal records of the financial activities that are undertaken by a firm. They are convenient instruments used for analyzing a company’s financial position and performance. Financial ratios are created with the help of the numerical values that are derived from the financial statements. They give meaningful information about the financial performance of the company.