Graph AFC, ATC, AVC, and MC curves

Related BrainMass Solutions

• Analyzing production costs - Fixed and Variable costs

  The MC, AVC, and ATC curves are U-shaped, reflecting first increasing and then diminishing returns. The ATC is the sum of AFC and AVC vertically.

• Graphing Cost Curves: AFC, AVC, ATC and MC

  The graph illustrates the behavior of the AFC, AVC, ATC and MC curves.

• Production Exercise

  Find TC, AFC, AVC, ATC, and MC for the following table. Also, graph the TC curve on one graph and graph AFC, AVC, ATC and MC on another graph.

• Studying average and total cost curves

  Solution explains the formulas for calculating TFC, TVC, TC, MC, AFC, AVC and ATC. It also explains the shape and behavior of average and total cost curves.

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  Total cost curves (FC, VC, and TC), Average cost curves (AFC, AVC, and ATC) plus the Marginal cost curve (MC) drawn.

• Production Costs Analysis

  The slopes of the curves then increase at an increasing rate as diminishing marginal returns occur. (b) Graph AFC, AVC ATC and MC.

• Al’s Bicycle Town: Production and Costs

  As you notice in the graph, the distance between ATC and AVC decreases as TP increases from the origin to the right, this distance is AFC. Relationship between AVC and MC: When MC is below AVC, it pulls AVC down.

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  There is no relationship between the [MC, VC and the AVC] and the [FC or the AFC]. The come together in the ATC.

• Cost of production

  182007 Cost of production 1.If MC is increasing, what is happening to the ATC? Why is this happening? a. What does the law of diminishing returns have to do with the shape of the AVC and ATC curves? Explain why those curves are U-shaped.