Total cost curve
Definition: Curves showing the total cost of producing an output.
Related glossary term: ...
cost curve: A graph of total costs of production as a function of total quantity produced.
Contexts: IO; micro ...
TOTAL COST CURVE: A curve that graphically represents the relation between total cost incurred by a firm in the short-run production of a good or service and the quantity produced.
Marginal Cost Curve (business term)
Marginal Analysis (in accounting)
Marginal Cost of Funds (in banking)
Hurdle Rate (business term) ...
long-run average cost curves
long-run production function and efficiency
returns to scale and isoclines
minimum efficient scale
plant capacity ...
Short Run Average cost curves tend to be U shaped because of the law of diminishing returns.
Long-run average cost curve (LAC) The locus of points representing the minimum unit cost of producing any given rate of output, given current technology and resource prices.
The unsatisfactory level of investments in new technologies and the growing trend of the marginal cost curve of oil production and transportation of the oil take unitary costs of the energy supply to non-easily predictable oscillations in an ...
In the standard diagram with a U-shaped average cost curve, the marginal cost curve intersects the average cost at the latter's minimum.
The law of diminishing returns is significant because it is part of the basis for economists' expectations that a firm's short-run marginal cost curves will slope upward as the number of units of output increases.
Envelope curve - (Also called an Umbrella Curve) Any curve that encloses, by being tangent to, a series of other curves. In particular, the envelope cost curve is the long-run average cost (LRAC) curve, ...
long-run average total cost curve the curve that traces out the short-run average total cost curves, showing the lowest average total cost for each quantity produced as the firm expands in the long run. (8) ...
a structure built on shifting sands.' One of the articles included in Viner's book, 'Cost Curves and Supply Curves,' lays out the short-run and long-run cost curves that still show up in microeconomics texts.
point is reached where diseconomies of scale (e.g., increased management supervision) occur, causing marginal costs to rise. When a company is at an optimum output level, marginal cost coincides with average total unit cost. The marginal cost curve ...
 See also: Perfect competition, Tip, Feedback, Marginal cost, Long-run
  
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