IB Economics | Total Fixed Costs, Total Variable Costs, Total Costs

In this video I explain the main types of costs that a firm incurs: total fixed costs, total variable costs and the total costs.
I also show them graphically.
Notice that on the TVC and TC curves, there is a portion of concavity and another portion of convexity. On the concave portion, the output is rising more than the costs because of the high efficiency of the variable factors of production.
However beyond a certain level, costs rise faster than output. The reason is that labor becomes less productive and hence we must hire much more labor in order to achieve our desired level of output.
And finally, the TC and TVC curves are parallel to each other, separated only by the amount of TFC.

IB,economics,mathematics,algebra,demand,supply,elasticity,price,quantity,costs,total costs,total fixed costs,total variable costs,production,firms,output,curve,concave curve,convex curve,