Cost of Production

Front

What is Total Cost (TC)?

Back

The full cost of producing goods, including all fixed and variable costs.

Front

How is Average Total Cost (ATC) calculated?

Back

Total cost divided by the quantity produced, showing the cost per unit.

Front

What are Fixed Costs (FC)?

Back

Costs that do not change with the production level, such as rent and salaries.

Front

What are Variable Costs (VC)?

Back

Costs that change with the production level, such as raw materials.

Front

How is Average Fixed Cost (AFC) calculated?

Back

Fixed cost divided by the quantity of output, showing fixed cost per unit.

Front

How is Average Variable Cost (AVC) calculated?

Back

Variable cost divided by the quantity of output, showing variable cost per unit.

Front

What is Marginal Cost (MC)?

Back

The cost of producing one additional unit of a good.

Front

What is Total Revenue (TR)?

Back

The total income earned from selling goods.

Front

How is Average Revenue (AR) calculated?

Back

Total revenue divided by the quantity of goods sold, showing revenue per unit.

Front

What is Marginal Revenue (MR)?

Back

The additional revenue earned from selling one more unit of a good.