Cost and revenue definition

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

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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

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The opportunity costs of production

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

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

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

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The total output produced by a firm, measured in units

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The average output produced per unit of variable cost

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

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A period of time when all factors of production are variable

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