Understanding how to graph these costs can help you analyze input and output. ... Examples include insurance, rent, ... The curve for average variable cost is U-shaped, ...

3. Hair Apparent is one of many identical firms in the highly competitive baldness treatment industry. Its cost function is given by TC = H 2 + 4 where H is the number of heads treated (number of ...

The total cost divided by q, or TC/q, is the Average Cost (AC) for q items. The average fixed cost, FC/q, or the average variable cost, TVC/q, are two other terms that can be used. The cost of ...

Example of Long-Run Average Total Cost For example, in the video game industry, the costs to produce a game are high. However, the cost of making copies of a game, once produced, is marginal.