This blog has been created to provide an area for economics students to read about how economics impacts daily life. It is especially useful for students to understand the application of macroeconomics as communicated through the media and governmental websites.

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Brief description: These are the four principal cost curves that are usually drawn. They are the average total cost, the average fixed cost, the average variable cost and marginal cost curves.

Detailed description: The average total cost curve is derived by adding together the average fixed and average variable cost curves. The average total cost curve, the average variable cost curve and the marginal cost curve are all u-shaped due to the presence of diminishing returns.