These curves are plotted from the data in Table 7-2. In part (i), total
fixed cost does not vary with output. Total variable cost and total cost
rise with output, first at a decreasing rate, then at an
increasing rate. The total cost curves in (i) give rise to the average and
marginal curves in (ii). Average fixed cost (AFC) declines as output
increases. Average variable cost (AVC) and average total cost (ATC) fall
and then rise as output increases. Marginal cost (MC) does the same,
intersecting the ATC and AVC curves at their minimum points. Capacity
(TC=TVC+TFC)