# Revenue and Costs Curves Analysis

Revenue and Costs Curves Analysis

The purpose of this Demonstration is to compare four feasible combinations of curves of revenues and costs. Each case is shown both in the scale of total values (top plot) and in the scale of average/marginal values (bottom plot). So, we consider three combinations compatible with economic theory, which make sense for optimization analysis (at least one of the curves on the total scale is nonlinear), and one simplistic linear-linear case, which is often used in practical breakeven point analysis.

All curve labels are constructed as follows: for revenues, for costs, for total, for average, for marginal.

R

C

T

A

M