Question: The graphs shown below show cost-volume- profit relationships as they are typically represented in (i) management accounting and (ii) economic theory. In each graph T

The graphs shown below show cost-volume- profit relationships as they are typically represented in (i) management accounting and (ii) economic theory. In each graph T = total revenue, TC = total cost, and P = profit. You are required to compare these different representations of cost-volume-profit relationships, identifying, explaining and commenting on points of similarity and also differences.

TR TR E TC E+ TC 0 0 Volume Volume f-

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