700 600 500 400 300 200 Fixed Cost 100 ($160) O 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...

Figure 7.7. What is the marginal gain
in output from increasing the number of barbers from
4 to 5 and from 5 to 6? Does it continue the pattern of
diminishing marginal returns?

Extracted text: 700 600 500 400 300 200 Fixed Cost 100 ($160) O 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 $160 are still present. As production increases, variable costs are added to fixed costs, and the total cost is the sum of the two. Total Cost ($)