CBSE
Class 10
Class 12
Shapes of TFC, TVC and TC Curves:
Shapes of AC, MC, AVC and AFC Curves:
In the figure,
Shape of AFC curve is downward sloping curve from left to right because average fixed cost goes on falling with every increase in output. On the other hand, MC, AC and AVC curves are U-shaped because of law of variable proportion. AVC, ATC and MC curves fall up to a point and then start rising. MC curve intersects AC and AVC at their minimum point.
Shapes of TFC, TVC and TC Curves:
Shapes of AC, MC, AVC and AFC Curves:
In the figure,
Shape of AFC curve is downward sloping curve from left to right because average fixed cost goes on falling with every increase in output. On the other hand, MC, AC and AVC curves are U-shaped because of law of variable proportion. AVC, ATC and MC curves fall up to a point and then start rising. MC curve intersects AC and AVC at their minimum point.