In the short run the marginal cost of the first unit of output is $20, the marginal cost of the second unit of output is $16, and the marginal cost of the third unit of output is $14. The firm's total cost of producing three units of output is

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Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.