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700 600 500 400 Total Cost ($) 300 200 Fixed 100 Cost 0 $160) 0 10 20 30 40 50 60 70 80 90 Output

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700 600 500 400 Total Cost ($) 300 200 Fixed 100 Cost 0 $160) 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. 41. Compute the average total cost, average variable cost, and marginal cost of producing 60 and 72 haircuts. Draw the graph of the three curves between 60 and 72 haircuts

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