1. What does line 1 represent?

to. Total variable cost

b. Sales income

c. Total cost

d. None of the above

2. What does the area between line 1 and line 2 represent?

to. Total variable cost

b. Profit or loss

c. Total marginal contribution

d. None of the above

3. The area that represents profit is the area:

to. Between line 1 and line 2

b. Between line 3 and line 2

c. Between line 3 and line 1 through the entire relevant range

d. Between line 3 and line 1 to the right of the point where these two lines intersect.

450,000 400,000+ 350,000 Lnea 3 300,000+ 250,000 Dollars 200,000+ 150,000+ Lnea 1 Lnea 2 100,000+ 50,000 + 200 + 300 100 500 600 700 800 400 Units