How total cost and unit cost vary with the volume of product


Problem

Suppose Malea Fashion District could negotiate the following terms with its materials supplier: 1% discount if purchases are over €100, 2% if they are over €1,000 and 3% if higher than €5,000. Can you draw a graph showing how total cost and unit cost vary with the volume of products? How would you describe these costs?

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Microeconomics: How total cost and unit cost vary with the volume of product
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