Total Fixed Cost
Total fixed cost will remain constant even though output changes.
Average Fixed Cost
Average fixed cost will fall as output increases.
Total Variable cost
As output increases, total variable cost will increases.
Average Variable Cost
The average cost curve is U-shaped. As output increases, average variable cost falls because of spreading of cost.
Total Cost
It can be defined as total variable cost plus total fixed cost.
Marginal Cost
Marginal cost will initially fall, reach the minimum and finally rise.
Download "Short run cost curves" handout
