Figure 7-2 Total, Average, and Marginal Cost Curves
L rises from 4 to 5), total costs rise from $180 to $200. Thus, marginal cost
over this range of output is equal to
The graphs in Figure 7-2 plot the cost curves from the data in Table
2. Part (i) plots the various total cost curves and shows that TVC rises at
a decreasing rate until output is approximately 60 units. For output levels
above 60, TVC rises at an increasing rate. Total fixed costs (TFC), of
course, do not vary as the level of output changes. Since TFC is
horizontal, the shape of TC comes from the shape of TVC.
$ 20 / 13 =$1.54.