Cost Functions

Production and Firm Behavior

Interactive Tutorial

Click on Lesson 2. This site explains Average fixed costs and average variable costs through graphical illustrations and movies showing the transformations.This tutorial is designed to teach about a very important part of Principles of Microeconomics, the cost functions! These functions are designed to help students understand the costs of production from different perspectives:; cost per unit versus total cost; explicit vs. implicit cost; deriving fixed, variable and total cost per unit; deriving average fixed, average variable and average total cost per unit; understanding and creating graphs for all the cost curves.