Short-Run Average Cost Curves Structure

AFC AVC ATC Output Quantity (Q) Unit Cost ($/unit)
$200
6.0
50 Units
Average Fixed Cost (AFC) $4.00 / unit
AFC = TFC / Q
Average Variable Cost (AVC) $8.50 / unit
AVC = b - (0.2 × Q) + (0.003 × Q²)
Average Total Cost (ATC) $12.50 / unit
ATC = AFC + AVC
Unit Gap (ATC - AVC) $4.00 / unit
Gap = AFC