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1. What concept is being portrayed in the following graph? Cost per mile (dollars) 0.35 0.30 0.25 0.20 COSTS PER PASSENGER MILE $0.31 $0.24

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1. What concept is being portrayed in the following graph? Cost per mile (dollars) 0.35 0.30 0.25 0.20 COSTS PER PASSENGER MILE $0.31 $0.24 $0.205 Average variable unit cost (10 cents per mile) $0.21 Average total unit cost 0.15 0.10 0.05 T 200,000 $0.14 $0.105 300,000 Passenger miles per month 400,000 Average fixed unit cost

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