Chapter 10, Problem 10.35P

1.

To determine

Variable Cost:

The Variable cost is that cost which varies with increase or decrease in the level of production. The Variable cost of per unit remains same. Here, it can be said that variable cost has the positive relationship with output of production.

Fixed Cost:

The Fixed cost is that cost which does not change with increase or decrease in the level of the production, but per unit fixed changes with change in the level production. Examples of the fixed cost are rent, wages and insurance

The total cost of the producing he six PT109

2.

To determine

Variable Cost:

The Variable cost is that cost which varies with increase or decrease in the level of production. The Variable cost of per unit remains same. Here, it can be said that variable cost has the positive relationship with output of production.

Fixed Cost:

The Fixed cost is that cost which does not change with increase or decrease in the level of the production, but per unit fixed changes with change in the level production. Examples of the fixed cost are rent, wages and insurance

difference of the total cost of producing 6 boats under learning curve and the total cost of producing 6 boats under linear function of labor hours.