Alfred has plotted revenue and cost graphs for his pastry business. He’s testing a number of cost assumptions against his business’s revenue. Which two statements correctly interpret the graphs? Cost falls and revenue rises up to approximately $6 per pastry.
After approximately $6, both cost and revenue fall.
Costs continue to fall beyond approximately $6 because of an increase in revenue.
Revenue continues to rise regardless of the change in price.
Revenue falls and cost rises up to approximately $17.