Provide a definition of this law and give ONE practical example.

b. Name the cost in relation to the type provided in the definition below. Illustrate your answer with the relevant diagram.

i. The increase in total cost from producing one more unit.

ii. Total cost less total variable cost.

iii. Total fixed cost divided by the level of output.

iv. Total cost less total fixed cost divided by the level of output.

v. Total cost divided by the level of output.

c. Distinguish between economies and diseconomies of scale. Mention TWO examples for each type that occur in real life business situations.