1. Fixed costs
   1. remain unchanged
   2. graph
      1. straight line
      2. quantity axis
2. average fixed cost
   1. decreases as volume of production increases
3. average variable costs
   1. increase when MC is bigger then AFC
4. Average cost
   1. decrease
      1. MC is less then previous average cost
   2. increase
      1. MC is greater then previous average cost
   3. graph
      1. cuts average cost at lowest point
5. Marginal Cost
   1. decrease
      1. if firm is experiencing increasing marginal returns
   2. increase
      1. diminishing marginal returns sets in