 In production analysis, we are going to study that how the cost curves they are drawn and the chapter is financial constraints. As we have already studied in the part of the output side that the production function or particularly the new classical production function has various stages and these various stages they are very much fruitful in deciding for the entrepreneur that up to which level he has to produce, which stage will be useful and in which stage if he enters that will be a risk or there will be an increase in the high cost. So reciprocating that production functions when the same level of the output is produced it also entails the reciprocating costs. Therefore, when we have to decide about the production process, we also have to decide about the related costs. So likewise the production we are having certain point of inflections then for those point of inflections in the production function what will be their reciprocating points on the cost curve. There are certain maximum and the minimum points in total output in the variable output and at the same time the marginal production or the marginal output. So the shape of these curves it also requires that the entrepreneur or the producer it should also have the knowledge related to the reciprocating cost curve. So now coming to the shape of the cost curve we are going to see this table that we have already utilized where we have plotted our output in first column and then we have plotted the fixed cost then variable cost, total cost, marginal cost and the other things that we have placed here. Now how we have to plot them in a curve then as all these costs they are particularly related with this units of output. So we will keep the units of the output on x axis and for the total cost we will keep the units of output on x axis by keeping the total cost on the vertical axis and then we will join all these points. As for the fixed cost again we will plot this against the units of output and when there is no change in the fixed cost definitely it will have a straight line. When we have this variable cost in the start as we see that it starts from small number of the cost rupees and then further it goes on increasing and after a certain point it further has a capacity might be to decrease like this. So all these costs they are plotted against their respective units. So when we draw in the start we will put the output that has to be produced by units on x axis and then one by one we will plot our fixed cost then variable cost and by adding the fixed cost and the variable cost we will come up with the total cost and then we will plot the total cost on the graph. When we draw the marginal cost curve we see that this marginal cost is basically the change in the total cost curve for one unit change in the output. So keeping in view the same we also draw the marginal cost curve on our plotting and we see the various points of the marginal cost curve they coincide also with the average cost curve and these are the main points that provide us certain significant points to draw certain decisions. So when coming to the these cost curves we can see that the fixed cost curves as it will have no change throughout the procedure so it will be the this straight line and the variable cost curve because it will be incremental but with the certain change and by addition of this variable cost plus this fixed cost we will have the total cost therefore the shape of the total cost curve will almost be similar to the variable cost because it will follow the same slope that is exhibited by the variable cost but the difference between this total cost curve and the variable cost curve will be equal to this fixed cost curve means this is the only difference that has been caused by the fixed cost curve. So on the certain points if we draw on this L point I am going to draw perpendicular here then we can see that if the 10 units of output are produced at this point fixed cost is equal to fixed this 50 and the variable cost is equal to 108 and by adding up at these two we can have this total cost curve that is the 150. So for any point if I am going to draw like here we can draw again the 50 fixed cost then again the variable cost and then the same way we can have our total cost curve and at the same graph we can see that the maximum point of the total cost curve maximum point of the variable cost curve we can depict on this graph. So basically these are the total cost curves and likewise now we also can draw average cost curves. So here we see the average cost curve it is going to exhibit likewise L shape curve as the fixed cost remains constant so when we divide it by the units of output it will be declining in the start more steeper and at the end it will be just close to the x axis but it will never become 0 because the fixed cost is never becoming 0 so when numerator is not 0 there is no possibility that the average fixed cost curve will become 0. As the average cost curve it increases if we see this curve so it is going to increase but when we divide this by the total units of the output then it exhibit a flatter form of the U shape curve that it shows that it will be the average variable and average total cost curve it starts likewise from this point when there was the fixed cost because either there was production or not fixed cost is there but at we can see that this average total cost curve it starts somewhat backward from the average variable cost because average variable cost starts when variables are added in the production process and the marginal cost curve it is more deep curve or the more U shape curve and it shows certain points that reciprocate the marginal product curve a curve when it intersects a point marginal cost and average variable cost that is the exactly the same point where marginal product curves intersect with the average product curve and when marginal cost curve will be below then the average variable cost curve that will be the part of the production function when average production curve will be higher or greater than the marginal product curve and the range after the intersection of the marginal cost and average variable cost curve this will be the part when average marginal product curve will be greater than the average product curve. So this type if we see that they will be the just mirror image of the marginal product curve so if I draw a simple way the marginal product curve and the total product curve it will be similar like this and in the mirror image we can see that this point it will just show the marginal cost curve and likewise we can see that it will be here average variable cost it will be average product here it will be marginal product and here it will be marginal cost curve and likewise the average total cost curve it will be like this so not exactly but it will exhibit the almost similar pattern that will be explained through total production curve and then the total cost curve so in this way it will be quite visible for the entrepreneur and for our policy makers to draw the various cost curves thank you