Cost curves and profit maximisation graph
Change the market price and fixed costs. The firm produces where marginal cost equals marginal revenue, with profit or loss shaded.
Learn cost of production properly
StudyAI writes clear notes on any topic you study, with practice quizzes, past-paper questions explained, and interactive models like this one in the notes.
Get free notes and a quiz on thisFree to start. No card needed.
Questions students ask
Where does a firm maximise profit?
Where marginal cost equals marginal revenue, with marginal cost rising.
When does a firm shut down in the short run?
When the price falls below the minimum average variable cost, so it cannot cover its variable costs.
Free notes on cost of production
- Production and Cost Theory · microeconomics
- Theory of Production and Cost in the Short Run · JC1 H2 economics
- Theory of Production and Cost in the Long Run · JC1 H2 economics
- Production and Cost in the Very Long Run & Synthesis · JC1 H2 economics
- Weighted-Average Method: Cost per Equivalent Unit and Cost Assignment · MANAGERIAL ACCOUNTING
- Consumer Behavior and Business Production · what is economics
More economics tools
Use this on your own site or class page
Copy this code. It is free to use, as long as the link stays.