How Do Cost
Curves Shift?
DO NOW: What can cause
A firm’s costs to change?
1
Shifting Costs Curves
TP
0
1
2
3
4
5
6
7
VC
0
10
16
21
26
30
36
46
FC
100
100
100
100
100
100
100
100
TC
100
110
116
121
126
130
136
146
MC
10
6
5
3
4
6
10
AVC AFC ATC
10
100
110
8
50
58
7
33.3 30.3
6.5
25
31.5
6
20
26
6
16.67 22.67
6.6
14.3 20.9
What if Fixed
Costs increase to
$200
2
Shifting Costs Curves
TP
0
1
2
3
4
5
6
7
VC
0
10
16
21
26
30
36
46
FC
100
100
100
100
100
100
100
100
TC
100
110
116
121
126
130
136
146
MC
10
6
5
5
4
6
10
AVC AFC ATC
10
100
110
8
50
58
7
33.3 30.3
6.5
25
31.5
6
20
26
6
16.67 22.67
6.6
14.3 20.9
3
Shifting Costs Curves
TP
0
1
2
3
4
5
6
7
VC
0
10
16
21
26
30
36
46
FC
200
200
200
200
200
200
200
200
TC
100
110
116
121
126
130
136
146
MC
10
6
5
5
4
6
10
AVC AFC ATC
10
100
110
8
50
58
7
33.3 30.3
6.5
25
31.5
6
20
26
6
16.67 22.67
6.6
14.3 20.9
4
Shifting Costs Curves
TP
0
1
2
3
4
5
6
7
VC
0
10
16
21
26
30
36
46
FC
200
200
200
200
200
200
200
200
TC
200
210
216
221
226
230
236
246
MC
10
6
5
5
4
6
10
AVC AFC ATC
10
100
110
8
50
58
7
33.3 30.3
6.5
25
31.5
6
20
26
6
16.67 22.67
6.6
14.3 20.9
Which Per Unit Cost Curves Change?
5
Shifting Costs Curves
TP
0
1
2
3
4
5
6
7
VC
0
10
16
21
26
30
36
46
FC
200
200
200
200
200
200
200
200
TC
200
210
216
221
226
230
236
246
MC
10
6
5
5
4
6
10
AVC AFC ATC
10
100
110
8
50
58
7
33.3 30.3
6.5
25
31.5
6
20
26
6
16.67 22.67
6.6
14.3 20.9
ONLY AFC and ATC Increase!
6
Shifting Costs Curves
TP
0
1
2
3
4
5
6
7
VC
0
10
16
21
26
30
36
46
FC
200
200
200
200
200
200
200
200
TC
200
210
216
221
226
230
236
246
MC
10
6
5
5
4
6
10
AVC AFC ATC
10
200
110
8
100
58
7
66.6 30.3
6.5
50
31.5
6
40
26
6
33.3 22.67
6.6
28.6 20.9
ONLY AFC and ATC Increase!
7
Shifting Costs Curves
If fixed costs change ONLY AFC and ATC Change!
TP
0
1
2
3
4
5
6
7
VC
0
10
16
21
26
30
36
46
FC
200
200
200
200
200
200
200
200
TC
200
210
216
221
226
230
236
246
MC
10
6
5
5
4
6
10
AVC AFC ATC
10
200
210
8
100
108
7
66.6 73.6
6.5
50
56.5
6
40
46
6
33.3 39.3
6.6
28.6 35.2
MC and AVC DON’T change!
8
Shift from an increase in a Fixed Cost
MC
Costs (dollars)
ATC1
ATC
AVC
AFC1
AFC
Quantity 9
Shift from an increase in a Fixed Cost
MC
Costs (dollars)
ATC1
AVC
AFC1
Quantity10
Shifting Costs Curves
TP
0
1
2
3
4
5
6
7
VC
0
10
16
21
26
30
36
46
FC
100
100
100
100
100
100
100
100
TC
100
110
116
121
126
130
136
146
MC
10
6
5
5
4
6
10
AVC AFC ATC
10
100
110
8
50
58
7
33.3 30.3
6.5
25
31.5
6
20
26
6
16.67 22.67
6.6
14.3 20.9
What if the cost for
variable resources
increase
11
Shifting Costs Curves
TP
0
1
2
3
4
5
6
7
VC
0
10
16
21
26
30
36
46
FC
100
100
100
100
100
100
100
100
TC
100
110
116
121
126
130
136
146
MC
10
6
5
5
4
6
10
AVC AFC ATC
10
100
110
8
50
58
7
33.3 30.3
6.5
25
31.5
6
20
26
6
16.67 22.67
6.6
14.3 20.9
12
Shifting Costs Curves
TP
0
1
2
3
4
5
6
7
VC
0
11
18
24
30
35
43
55
FC
100
100
100
100
100
100
100
100
TC
100
110
116
121
126
130
136
146
MC
10
6
5
5
4
6
10
AVC AFC ATC
10
100
110
8
50
58
7
33.3 30.3
6.5
25
31.5
6
20
26
6
16.67 22.67
6.6
14.3 20.9
13
Shifting Costs Curves
TP
0
1
2
3
4
5
6
7
VC
0
11
18
24
30
35
43
55
FC
100
100
100
100
100
100
100
100
TC
100
111
118
124
130
135
143
155
MC
10
6
5
3
4
6
10
AVC AFC ATC
10
100
110
8
50
58
7
33.3 30.3
6.5
25
31.5
6
20
26
6
16.67 22.67
6.6
14.3 20.9
Which Per Unit Cost Curves Change?
14
Shifting Costs Curves
TP
0
1
2
3
4
5
6
7
VC
0
11
18
24
30
35
43
55
FC
100
100
100
100
100
100
100
100
TC
100
111
118
124
130
135
143
155
MC
11
7
6
6
5
8
12
AVC AFC ATC
10
100
110
8
50
58
7
33.3 30.3
6.5
25
31.5
6
20
26
6
16.67 22.67
6.6
14.3 20.9
MC, AVC, and ATC Change!
15
Shifting Costs Curves
TP
0
1
2
3
4
5
6
7
VC
0
11
18
24
30
35
43
55
FC
100
100
100
100
100
100
100
100
TC
100
111
118
124
130
135
143
155
MC
11
7
6
6
5
8
12
AVC AFC ATC
11
100
110
9
50
58
8
33.3 30.3
7.5
25
31.5
7
20
26
7.16 16.67 22.67
7.8
14.3 20.9
MC, AVC, and ATC Change!
16
Shifting Costs Curves
If variable costs change MC, AVC, and ATC Change!
TP
0
1
2
3
4
5
6
7
VC
0
11
18
24
30
35
43
55
FC
100
100
100
100
100
100
100
100
TC
100
111
118
124
130
135
143
155
MC
11
7
6
6
5
8
12
AVC AFC ATC
11
100
111
9
50
59
8
33.3 41.3
7.5
25
32.5
7
20
27
7.16 16.67 23.83
7.8
14.3 22.1
17
Shift from an increase in a Variable Costs
MC1
Costs (dollars)
MC
ATC1
AVC1
ATC
AVC
AFC
Quantity18
Shift from an increase in a Variable Costs
MC1
Costs (dollars)
ATC1
AVC1
AFC
Quantity19
20