Cost Curves

By Jodi Beggs, About.com Guide

Since average total cost is equal to total cost divided by quantity, average total cost can be derived from the total cost curve. Specifically, average total cost for a given quantity is given by the slope of the line between the origin and the point on the total cost curve that corresponds to that quantity. This is simply because the slope of a line is equal to the change in the y-axis variable divided by the change in the x-axis variable, which in this case is in fact equal to total cost divided by quantity.

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• Cost Curves
• Total Cost
• Total Fixed Cost and Total Variable Cost
• Average Total Cost Can Be Derived from Total Cost
• Marginal Cost Can be Derived from Total Cost
• Average Fixed Cost
• Marginal Cost
• Marginal Cost for a Natural Monopoly

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