Cost Curve - Graphing Cost Curves Together

Graphing Cost Curves Together

Cost curves can be combined to provide information about firms. In this diagram for example, firms are assumed to be in a perfectly competitive market. In a perfectly competitive market the price that firms are faced with would be the price at which the marginal cost curve cuts the average cost curve.

Read more about this topic:  Cost Curve

Famous quotes containing the words cost and/or curves:

    “How much would it cost you to stand at the wrong end of a shooting gallery?”
    —S.J. Perelman, U.S. screenwriter, Bert Kalmar, Harry Ruby, and Norman Z. McLeod. Groucho Marx, Horsefeathers, Huxley College president to con artist Baravelli (Chico Marx)

    “At the end of every diet, the path curves back toward the trough.”
    —Mason Cooley (b. 1927)