How does average total cost change as more rooms are vacuumed by the Whiz, and how does average total cost change as more rooms are vacuumed by hiring more labor?
Average total cost ___________ as more rooms are vacuumed by the Whiz, and average total cost ___________ as more rooms are vacuumed by hiring more labor.
Wrong! - The cost of vacuuming by robot is a fixed cost. How does average fixed cost change as more rooms are vacuumed? The cost of vacuuming by labor is a variable cost. How does average variable cost change as more rooms are vacuumed?
Good Job! - The cost of vacuuming by robot is a fixed cost. Average fixed cost falls as more rooms are vacuumed, which decreases average total cost. The cost of vacuuming by labor is a variable cost. As more labor is hired to vacuum rooms, average variable cost initially decreases and then increases, which increases average total cost.
