(b) Discussion
Identifying lines 1
Cost structure:
Stepped fixed costs 1
Variable cost at 100 units 1
Variable cost at 200 units 1
Variable cost at 300 units 1
Variable cost at 400/500 units 1
Explanation of steepness of lines 2
Revenue structure:
Constant price to 400 athletes of $300 1
Decrease price to $280 1
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Maximum marks 8