Cost and revenue definition

A period of time when at least one factor of production is fixed, usually rent or machinery

The total costs of production incurred by a firm. This is equal to fixed plus variable costs. In economics this includes all implicit costs as well as the explicit ones

The opportunity costs of production

A cost which is fixed, i.e. it does not vary with output e.g rent, machinery, administration and marketing costs

Costs which change directly with output. Examples include direct labour costs as well as supplies and raw materials

This is the total cost of production divided by the number of units produced (Q)

The total output produced by a firm, measured in units

The average output produced per unit of variable cost

The total revenue produced by a firm, measured in monetary terms usually in $. This is also sometimes called sales revenue

A period of time when all factors of production are variable