Final answer:
To create a graph showing Average Total Cost, Marginal Cost, Average Variable Cost, and Average Fixed Cost, create a table with the necessary data and calculate the values for each curve. Then plot the curves on a graph with the output on the x-axis and the cost values on the y-axis, labeling each curve clearly.
Step-by-step explanation:
To create a graph that shows the Average Total Cost, Marginal Cost, Average Variable Cost, and Average Fixed Cost, you can start by creating a table that includes the company's output, total cost, marginal cost, average cost, variable cost, and average variable cost. Once you have the data, you can plot the curves on a graph, labeling each axis and curve clearly.
For example, let's say the company's output ranges from 0 to 10 units. From the table, you can calculate the Average Total Cost by dividing the Total Cost by the output. The Marginal Cost can be calculated by finding the change in Total Cost when the output increases by one unit. The Average Variable Cost is found by dividing the Variable Cost by the output, and the Average Fixed Cost is calculated by subtracting the Average Variable Cost from the Average Total Cost.
Once you have these values, you can plot each curve on the graph, using the output as the x-axis and the cost values as the y-axis. Label each curve accordingly to distinguish between them.