Cost and cost curve.

1. CostAnd
Costcurve

2. We will discuss about
1.what is cost?
2.Types of cost.
3.cost curve detail.

3. WHAT IS COST?
AN AMOUNT THAT HAS TO
BE PAID OR GIVEN UP IN
ORDER TO GET
SOMETHING.

4. Types of cost:
There are two type of cost in every
company
1.fixed cost [don’t change with the
amount produce]
2.Variable [do change with the amount
produce]
There is another called
total cost [ fixed cost + variable cost]
marginal cost [additional cost for additional
output]

5. So here is a chart of various cost

7. Now for the per unit cost we need
:
 Average variable cost [variable
cost/quantity]
 Average fixed cost [fixed
cost/quantity]
 Average total cost [total
cost/quantity]

8. For Per unit cost:

9. Cost curve for 5 unit production: