700 600 500 400 Total Cost ($) 300 200 Fixed 100 Cost ($160) 0 0 10 20 30 40 50 60 70 80 90 Output Figure 7.7 How Output Affects Total Costs At zero production, the fixed costs of $160 are still present. As production increases, variable costs are added to fixed costs, and the total cost Is the sum of the two. 40. Return to Figure 7.7 . What is the marginal gain in output from increasing the number of barbers from 4 to 5 and from 5 to 6? Does it continue the pattern of diminishing marginal returns