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This module introduces several different cost curves. These cost curves are interrelated.
- Explain the shape of the average fixed cost curve (AFC) and how the AFC contributes to the relationship between the average total cost curve (ATC) and the average variable cost curve (AVC).
- Explain the shape of the marginal cost (MC) curve and how it relates to the average total cost curve and average variable cost curve.
- Explain how the production function relates to the shape of the marginal cost curve.
- Use an example from your own experiences to illustrate these curves (for example; getting friends to help you move).
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