A firm has fixed costs of $60 and variable costs as indicated in the table at the bottom of this page. Total Total Total Total Product Fixed Cost Average Variable Cost Average Cost Average Fixed Cost Marginal Variable Cost Total Cost Cost O Graph total fixed cost, total variable cost, and total cost. Explain how the law of diminishing returns influences the shapes of the variable-cost and total-cost curves. Graph AFC, AVC, ATC, and MC. Explain the derivation and shape of each of these four curves and their relationships to one another. Specifically, explain in nontechnical terms why the MC curve intersects both the AVC and the ATC curves at their minimum points. c. Explain how the location of each curve graphed in question 3b would be altered if (1) total fixed cost had been $100 rather than $60 and (2) total variable cost had been $10 less at each level of output