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MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam
Cost Curves
MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam
MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam
Key Points
Fixed Cost = Total constant, per unit falls with increase in volume
Variable Cost= Falls due to economies of scale, but starts rising after
Marginal Cost= comes down first and then starts rising
MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam
AFC ,AVC and ATC curves
AFC-Falls increase volume, will never touch X axis.
AVC - First fall, reach min level and then rise.
Due to diminishing return
ATC- depends on behaviour of AFC & AVC.
AFC & AVC falls ATC falls sharply.
AVC rises but AFC falls, ATC stills falls
With sharp rise in AVC ,ATC also rises.
U shaped
MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam
Marginal Cost
MC, not dependent on AFC. It depends on AVC
ATC and MC
When AC falls MC is less than AC
When AC is min MC = AC
When AC rises MC is more than AC
MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam
Watch Full Video course & take quiz visit
https://www.meraskill.com
https://meraskill.com/ca-cpt/cpt-notes
https://meraskill.com/ca-cpt/cpt-exam
http://www.meraskill.com/cpt-question-paper
https://meraskill.com/ca-cpt/cpt-syllabus
https://www.meraskill.com/fridayrelease
MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam

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Cost curves

  • 1. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam Cost Curves MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam
  • 2. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam Key Points Fixed Cost = Total constant, per unit falls with increase in volume Variable Cost= Falls due to economies of scale, but starts rising after Marginal Cost= comes down first and then starts rising
  • 3. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam AFC ,AVC and ATC curves AFC-Falls increase volume, will never touch X axis. AVC - First fall, reach min level and then rise. Due to diminishing return ATC- depends on behaviour of AFC & AVC. AFC & AVC falls ATC falls sharply. AVC rises but AFC falls, ATC stills falls With sharp rise in AVC ,ATC also rises. U shaped
  • 4. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam Marginal Cost MC, not dependent on AFC. It depends on AVC ATC and MC When AC falls MC is less than AC When AC is min MC = AC When AC rises MC is more than AC
  • 5. MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam Watch Full Video course & take quiz visit https://www.meraskill.com https://meraskill.com/ca-cpt/cpt-notes https://meraskill.com/ca-cpt/cpt-exam http://www.meraskill.com/cpt-question-paper https://meraskill.com/ca-cpt/cpt-syllabus https://www.meraskill.com/fridayrelease MeraSkill.com Online preparation for CA CPT,CS & CMA Foundation exam