Explain with the aid of appropriate diagrams, each of the following costs.Fixed Costs ,Variable Costs ,Average Total Costs and Marginal Costs

Fixed Costs are costs that do not vary with output e.g. rent, loan repayments etc.

Fixed costs

Variable Costs are costs that do vary with the level of output e.g. raw materials

Variable costs

Average Total Costs is made up of Average Fixed Costs and Average Variable Cost. It is the total cost per a unit being produced
Average costs
Marginal Cost is the extra cost of producing one extra unitMarginal cost

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