TOTAL COST CURVE:

A curve that graphically represents the relation between the total cost incurred by a firm in the short-run production of a good or service and the quantity produced. The total cost curve is a cornerstone upon which the analysis of short-run production is built. It combines all opportunity cost of production into a single curve, which can then be used with the total revenue curve to determine profit. The marginal cost curve, THE focal point for the analysis of short-run production, is derived directly from the total cost curve. The shape of the curve reflects increasing marginal returns at small quantities of output and decreasing marginal returns at larger quantities.

The total cost curve is frequently used with a total revenue curve to determine the profit maximizing level of production for a firm. However, this curve is perhaps most important as the basis for deriving the average total cost curve and the marginal cost curve. In particular, marginal cost is the slope of the total cost curve.

<= TOTAL COST AND MARGINAL COST

TOTAL COST CURVES =>

TOTAL COST CURVE, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2022. [Accessed: May 25, 2022].

     | variable cost | fixed cost | total cost curve | total variable cost | total variable cost curve | total fixed cost | total fixed cost curve | average cost | average total cost | marginal cost |

     | opportunity cost | explicit cost | economic cost | cost | production | production cost | business | factors of production | microeconomics | short-run production analysis | law of diminishing marginal returns | marginal returns | marginal analysis | production stages |

     | average fixed cost | average variable cost | total cost and marginal cost | total cost curves | total variable cost and total product | legal business organizations | firm objectives | opportunity cost, production possibilities | profit | economic profit | accounting profit | normal profit | accounting cost | profit maximization | long-run total cost | perfect competition, total analysis | monopoly, total analysis |

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