How are they related to each other and to output ?

The various costs are related to each other in different ways :

Total Cost (TC) and Marginal Cost (MC):
Marginal cost refers to the additional cost incurred in producing one more unit of a good or
service. Marginal cost is closely related to total cost, which is the sum of all the costs incurred in
producing a given quantity of output. As output increases, marginal cost usually increases as
well, reflecting the fact that additional units of output require more resources to produce.
Therefore, the marginal cost curve intersects the total cost curve at its lowest point, which
represents the efficient level of output for the firm.

Fixed Cost (FC) and Variable Cost (VC):

Fixed costs are costs that do not vary with changes in output, while variable costs are costs that
do vary with changes in output. Total cost is the sum of fixed cost and variable cost, and marginal
cost is the additional variable cost incurred in producing one more unit of output. Fixed costs are
important because they represent a sunk cost that the firm cannot recover in the short run, while
variable costs can be adjusted in response to changes in output.
For example, the rent for a factory is a fixed cost, while the cost of raw materials is a variable
cost.

Average Cost (AC) and Marginal Cost (MC):

Average cost is the total cost per unit of output, and is calculated by dividing total cost by the
quantity of output. Average cost can be broken down into average fixed cost (AFC), which is
fixed cost per unit of output, and average variable cost (AVC), which is variable cost per unit of
output. Marginal cost intersects the average total cost curve (ATC) and the average variable cost
curve (AVC) at their minimum points, because the marginal cost of producing an additional unit
of output must be equal to the average cost of all units produced.
When marginal cost is less than average cost, the average cost is decreasing. Conversely, when
marginal cost is greater than average cost, the average cost is increasing.
The various costs are related to output in the following ways:

Total Cost: As output increases, total cost also increases. This is because more resources are
needed to produce a larger quantity of output.

Marginal Cost: Marginal cost (MC) is the additional cost incurred in producing one more unit of
output. Marginal cost is closely related to output because it reflects the change in total cost due to
a change in output. As output increases, marginal cost may initially decrease due to economies of
scale, but eventually, it will start to increase due to diminishing marginal returns.
Marginal costs are important because they determine the profit-maximizing level of output for a
firm.
For example : If a firm can produce additional units of output at a lower marginal cost than the
price it can sell those units for, it will increase its profit margin. However, if the marginal cost of
producing an additional unit of output is greater than the price it can sell that unit for, the firm
will decrease its profit margin.

Fixed Cost: Fixed cost (FC) is the cost that does not vary with changes in output. Fixed costs are
incurred regardless of the level of output produced. Therefore, as output increases, fixed cost per
unit of output decreases.
Fixed costs can be a significant portion of a firm's total costs, especially for capital-intensive
industries. In the short run, fixed costs can constrain a firm's ability to increase output. However,
in the long run, firms can adjust their fixed costs to better align with their output.
Variable Cost: Variable cost (VC) is the cost that varies with changes in output. Variable costs
are directly related to the level of output produced. As output increases, variable cost also
increases.
For example : If a firm can reduce its variable costs per unit of output, it can increase its profit
margin.

Average Cost: As output increases, average cost may initially decrease due to economies of
scale, but eventually, it will start to increase due to diminishing marginal returns.
For example : If a firm can produce each unit of output at a lower average cost than its
competitors, it will have a competitive advantage.

LIST OF REFERENCES :
Various cost related to each other :
https://psu.pb.unizin.org/introductiontomicroeconomics/chapter/chapter-6-costs-and-production/
https://www.pearson.com/channels/microeconomics/learn/brian/ch-10-the-costs-of-production/
the-relationship-between-average-cost-and-marginal-cost
https://www.smartcapitalmind.com/what-is-the-relationship-between-average-cost-and-marginal-
cost.htm
https://www.pearson.com/channels/microeconomics/learn/brian/ch-10-the-costs-of-production/
the-relationship-between-average-cost-and-marginal-cost
Various cost relate to output:
https://www.mbaknol.com/managerial-economics/cost-output-relationship/
https://www.slideshare.net/DheerajSinghRajput/cost-output-relationship-estimation-of-cost-and-
output