You were at a recent presentation at a science venue. The main presenter stated: The cost-volume-profit chart is really easy to understand. It basically shows that total cost increases at a faster rate than total variable cost with both starting at the point of origin. Also, average variable cost declines as quantity of production increases and average fixed cost increases as quantity of production increases. The production above the breakeven point also leads to losses with a maximum loss of infinity. And finally, as quantity of production declines the total revenue declines at an ever decreasing rate.

Required: Is the presenter correct? Clarify any statements you feel are incorrect with the presenters statements.

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