Cost curve

（重定向自Long run average cost）

A U shaped short run Average Cost(AC) curve. AVC is the Average Variable Cost, AFC the Average Fixed Cost, MC the marginal cost crossing the minimum of the Average Cost curve.

Cost curves in perfect competition compared to marginal revenue

In economics, a cost curve is a graph of the costs of production as a function of total quantity produced. In a free market economy, productively efficient firms use these curves to find the optimal point of production (minimizing cost), and profit maximizing firms can use them to decide output quantities to achieve those aims. There are various types of cost curves, all related to each other, including total and average cost curves, and marginal ("for each additional unit") cost curves, which are equal to the differential of the total cost curves. Some are applicable to the short run, others to the long run.

单词	Long run average cost
释义	Long run average cost 英语百科 Cost curve （重定向自Long run average cost） In economics, a cost curve is a graph of the costs of production as a function of total quantity produced. In a free market economy, productively efficient firms use these curves to find the optimal point of production (minimizing cost), and profit maximizing firms can use them to decide output quantities to achieve those aims. There are various types of cost curves, all related to each other, including total and average cost curves, and marginal ("for each additional unit") cost curves, which are equal to the differential of the total cost curves. Some are applicable to the short run, others to the long run.
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