Total Fixed Cost

Total fixed cost will remain constant even though output changes.

total fixed cost curve

Average Fixed Cost

Average fixed cost will fall as output increases.

average fixed cost curve

As output increases, total variable cost will increases.

total variable cost

The average cost curve is U-shaped. As output increases, average variable cost falls because of spreading of cost.

average variable cost

It can be defined as total variable cost plus total fixed cost.

total cost

Marginal cost will initially fall, reach the minimum and finally rise.

marginal cost curve