Skip to main content

This figure shows two graphs side by side.

Both have ‘Cost (£)’ on the vertical axis and ‘Output’ on the horizontal axis. Both output axes run from 1 to 8 but the vertical axes have different scales. The graph on the left runs from zero up to 10,000 in intervals of 1000. The graph on the right runs from zero to 2,500 in intervals of 500.

These graphs plot the data in the table.

The left graph shows a line rising steadily upwards from a plot of output1, £2000, (which is a point on the vertical axis) up to a plot of output 8,£9000.

The right graph shows a very shallow U shaped curve, starting at a plot of Output 1,£2000, (which is a point on the vertical axis), steadily falling to a minimum point on the curve of Output 5,£950 and then a very gentle rise to Output 8, £1125.

 Short run average cost (SRAC) curves (2)