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The productively efficient companies and profit maiming firms used the curve to minimize production cost and achieving aims respectively. There are various types of cost curves used in economics including Short-run average variable cost curve, Short-run average total cost curve, Long-run total cost curve, short-run marginal cost curve, Long-run marginal cost curve, U-shaped curves and their relationship with each other.

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Overview of Cost Curves

In terms of economics, a cost curve represents a graph that contains production costs and total quantity produced. Firms use cost curves in order to maximize profit and track a record. Various types of cost curves are:

  • The long-run average cost curve
  • Marginal cost
  • Average variable cost
  • Short-run and long-run cost curves
  • Average cost curves economics
  • Total cost curves economics
  • Average fixed cost (AFC),
  • Average variable cost (AVC),
  • Marginal cost (MC) and average total cost (ATC)

The cost structure of a business is divided into:

  • Standard cost accounting,
  • Activity-based accounting,
  • Lean accounting and marginal costing

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