Topic
Cost Functions: Common Forms
Plots of fixed cost, variable cost, total cost, average fixed cost, average variable cost, average total cost and marginal cost and combinations thereof to clarify how these functions relate to one another.
Objective
The visualisations in this section focus on alternative specifications of cost functions that are commonly used in economics.
They all aim to clarify the respective behaviour of fixed cost, variable cost, total cost, average fixed cost, average variable cost, average total cost and marginal cost, how these relate to one another as well as how alternative choices of parameter values affect the respective graphs. This creates the basis for understanding how changes in the prices of factors of production as well as technology lead to changes in the supply of goods and services.
Visualisation Groups
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Depicts fixed cost, variable cost, total cost, average fixed cost, average variable cost, average total cost and marginal cost of a linear cost function in individual coordinate systems as well as combinations thereof in different views designed to clarify the relations among these functions. Clarifies the forms of these functions, the effects of alternative parameter values on those forms, as well as the interpretation of points on these functions.