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Concept of Cost curves in Economics and its importance
Cost curves in economics is a graph of the cost of production as a function of the total quantity produced. Cost curves are used by the firms to find the optimal point of production to minimize the cost and to maximize the profit. A firm can easily determine the quantity that needs to be produced to meet the requirement of profit maximization.
There are the different type of Cost curves. Few important ones are Short-run average variable cost curve (SRAVC), Short-run average total cost curve (SRATC or SRAC), and Long-run average cost curve (LRAC), Short-run marginal cost curve (SRMC) and Long-run marginal cost curve (LRMC). We can help you understand the meaning of all these curves and their application in determining the production cost and quantity.
Cost Curve assistance is a unique service offered by our team of experts. There are no direct assignments from this area. However, it is used in abundance throughout microeconomics.
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