To the right are typical short run cost curves for any firm. It should be clear that they are short run because we show both an Average Total Cost curve and an Average Variable Cost curve. Remember that the difference between these two is Average Fixed Costs (ATC - AVC = AFC). Often we'll only show the MC and ATC curves, adding the AVC curve only when needed.

   As we know, the MC curve is also the firm's short run supply curve. Actually it turns out that part of the MC can be excluded, but we'll get to that...

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