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:
“History is strewn with the wrecks of nations which have gained a little progressiveness at the cost of a great deal of hard manliness, and have thus prepared themselves for destruction as soon as the the movements of the world gave a chance for it.”
—Walter Bagehot (18261877)
“For a hundred and fifty years, in the pasture of dead horses,
roots of pine trees pushed through the pale curves of your ribs,
yellow blossoms flourished above you in autumn, and in winter
frost heaved your bones in the groundold toilers, soil makers:
O Roger, Mackerel, Riley, Ned, Nellie, Chester, Lady Ghost.”
—Donald Hall (b. 1928)