A three-year pact between OPEC and Russia ended in acrimony on Friday after Moscow refused to support deeper oil cuts to cope with the outbreak of coronavirus and OPEC responded by removing all limits on its own production so the overall supply of oil increases. Due to mass production, the total cost increases but at the same time, the fixed cost gets distributed over large units of oil produced which thus reduces the average fixed cost.

The Average Variable Cost also reduces and thus the countries are able to bring down the cost of production as they are able to achieve economies of scale due to large scale production. The benefit of low cost is passed on to the customers in the form of low price and thus Saudi Arabia slashed its price and passed on the benefit to the customers in the form of slashed price and discounts.

Please can you draw graphs for total cost, variable cost and fixed cost for the above scenario?