A curve showing the average total cost for different levels of output when at least One input of production is fixed, typically plant capacity, is the short-run average cost curve.
A cost curve is a graph that shows the costs of production as a function of the overall amount produced in economics. A cost curve is the end result of productively efficient enterprises in a free market economy optimising their production process by minimising cost consistent with each feasible level of production.
Cost curves are used to determine output volumes by profit-maximizing businesses. There are several distinct kinds of cost curves that are all connected to one another, such as total and average cost curves, marginal cost curves that are equal to the difference between total and marginal cost curves, and variable cost curves. While some apply in the near term, others do so in the long term.
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