Skip to content

Cost Curves Visualizer

Run the Cost Curves Visualizer MicroSim Fullscreen
Edit in the p5.js Editor

About This MicroSim

This MicroSim displays the four key cost curves that every economics student needs to understand: Marginal Cost (MC), Average Total Cost (ATC), Average Variable Cost (AVC), and Average Fixed Cost (AFC). Students can adjust both the quantity produced and the market price to see how profit or loss changes in real time. The green and red shaded regions visually represent profit and loss areas, making it easy to see the relationship between price and average total cost.

How to Use

  1. Adjust the Quantity slider to move the dashed vertical line across the graph and see how each cost measure changes as production increases.
  2. Adjust the Price slider to set the market price (shown as an orange dashed horizontal line). Watch the profit/loss display update in real time.
  3. Toggle the checkboxes (MC, ATC, AVC, AFC) at the bottom to show or hide individual cost curves and focus on specific relationships.
  4. Read the data panel in the upper right to see exact dollar values for each cost measure at the current quantity, plus total profit or loss.

Iframe Embed Code

You can add this MicroSim to any web page by adding this to your HTML:

<iframe src="https://dmccreary.github.io/economics-course/sims/cost-curves-visualizer/main.html"
        height="482px"
        width="100%"
        scrolling="no"></iframe>

Lesson Plan

Grade Level

9-12 (High School Economics)

Duration

10-15 minutes

Prerequisites

  • Understanding of fixed costs vs. variable costs
  • Basic knowledge of what average and marginal mean in economics

Activities

  1. Exploration (5 min): Hide all curves except ATC. Move the quantity slider to find the quantity where ATC is lowest. Then turn on MC and observe where MC crosses ATC. What do you notice about the crossing point?
  2. Guided Practice (5 min): Set the price to $15. Slowly increase quantity from 1 to 100. At what quantity does the firm start making a profit? At what quantity is profit maximized? Why does profit eventually decline?
  3. Assessment (5 min): Set the price to $8. Is the firm making a profit or loss at any quantity? Should the firm shut down? Compare AVC to the price to explain your reasoning.

Assessment

  • Students can identify the minimum point of the ATC curve and explain why MC crosses ATC at that point
  • Students can determine whether a firm is making a profit or loss by comparing price to ATC
  • Students can explain the shutdown condition by comparing price to AVC

References

  1. Cost curve - Wikipedia - Overview of marginal cost, average total cost, and average variable cost curves.
  2. Average Total Cost - Investopedia - Explanation of ATC and its relationship to other cost measures.
  3. Costs of Production - Khan Academy - Video lessons on cost curves and their economic significance.