16

14

12

10

8
Total Cost

0
0 2 4 6 8 10 12

Quantity of Output

The quantity of output is shown from the first column of the table. Total cost is shown from the second
column of the table. The total cost curve gets steeper as the quantity of output increases because of the
diminishing marginal product. Again, a firm total cost is the sum of firms fixed cost and variable cost.
 3.5

2.5

Fixed Cost
1.5

0.5

0
0 2 4 6 8 10 12

Quantity of Output

Here, Shows the fixed cost. Quantity of output has been taken from the first column of the table and
fixed cost has been taken from the third column of the table in page 1.fixed cos curve is a horizontal line
because the cost does no vary with the quantity of output changes.
 14

12

10

Variable Cost
6

0
0 2 4 6 8 10 12

Quantity of Output

Here, in the variable cost curve we have taken the quantity of ouput from the first column of the table
given in page 1. And variable cost has been taken from the fourth column of the table. Variable cost
curve gets stepper like the total cost curve and quantity of output increases because of the diminishing
marginal product.
 Q
u
a
n
ti
ty

o
f
O
u
tp

u
t

3.5

2.5

Cost ($)
1.5

0.5

0
0 2 4 6 8 10 12

Quantity of Output
AFC AVC ATC MC

Average fixed cost has been taken from the page 1 table, fifth column. Average variable cost has been
taken from the sixth column, Average Total cost has been taken from seventh column, and A marginal
cost has been taken from the last column of the table. Conrad’s Average-Cost and Marginal Cost Curves.
This curve shows the average total cost (ATC). Average Fixed Cost (AFC), Average Variable cost(AVC)
And Marginal Cost (MC) for Conrad’s. THESE COST CURVES SHOWS THREE FEATURES THAT ARE TYPICAL
OF MANY FIRMS (1) Marginal Cost rises with the quantity of output. (2) The average total cost curve is
U-shaped. (3) The marginal cost curve crosses the average total cost curves at the minimum of average
total cost.

THE END