What is a strategy for differentiating between all the different cost curves? Each one is shaped a certain way, and there is a definite relationship between all the different cost curves.© BrainMass Inc. brainmass.com March 22, 2019, 2:46 am ad1c9bdddf
Marginal Cost Curve: Its J shaped, or shaped like a hockey stick
Average Fixed Cost Curve: Shaped like an L. Starts high, steep drop and then almost horizontal to the X axis.
Average Variable Cost: Looks like a smiley face.
Average Total Cost: Looks like a smiley face, but ...
This solution of 213 words explains the shapes of four different cost curves and explains the relationship between the cost curves.