If a firm's total cost curve is a straight line, then its average total cost curve will also be a straight line.

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If a firm's total cost curve is a straight line, it implies that total costs increase at a constant rate as output increases. However, average total cost (ATC), which is total cost divided by the quantity of output, will typically not be a straight line because the shape of the ATC curve depends on how total costs are spread out over different levels of output. As output increases, ATC may initially decrease due to spreading fixed costs over more units, reach a minimum, and then increase due to rising variable costs, forming a U-shape rather than a straight line.

If a Firm's Total Cost Curve Is a Straight Line