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Short Run Costs and Curves (6)

Short Run Costs and Curves (6)

Terms in this set (36)

Fixed cost (FC)

costs that don't change with amount of output (costs of the fixed input)

*A SUNK COST IN THE SHORT RUN

Variable cost (VC)

costs that do change with amount of input (costs of the variable inputs)

Total cost (TC)

TC=FC+VC

total cost of producing a given quantity of output

Fixed Cost Curve

flat horizontal line

Variable cost and total cost curve

same shape and slope, apart by the amount of the fixed cost- not u shaped

*both rise at an increasing rate because of decreasing marginal product