Short-run total cost curves

The short run total cost can be explained as follows :

Fixed cost:The fixed cost is also called overhead cost,supplementary cost.The cost incurred in fixed factors is called fixed cost.The fixed cost cannot be changed in the short run.The fixed cost will have to be incurred even if the production is stopped for some time.The expenditure made on machinery,land,building and so on is the example of fixed cost.The curve representing these costs is called fixed curve cost curve.The sum of implicit fixed costs is called total fixed cost.The curve representing this is called total fixed cost curve.

Variable cost:The variable cost is also the prime cost,special cost and direct cost.The expenditures made on variable factors is called variable cost.The variable cost varies with output.The expenditure made on raw materials,wages,fuel are the examples of variable cost.The sum of the expenditures made on variable factors is the total variable cost.The curve representing this is called total variable cost curve.

Total cost:The sum of total fixed cost and total variable cost is total cost.Hence,TC=TFC+TVC.The total cost directly varies with output.Hence,the total cost is expressed as,TC=f(q),where q=quantity of output.The curve representing total cost is called total cost curve.