costs and revenues

total cost

The amount spent on producing a given level of output	TC = FC + VC

Variable Cost

Production expenses dependant on the level of output. VC = TC-FC

Fixed Cost

production expenses independent upon the output level

Average cost

The amount spent on producing a single unit - often known as unit cost

average variable cost

unit costs which are dependant on the level of output AVC= TVC / Q or AVC = AC - AFC

Average Fixed Cost

Unit costs independent of the level of output. AFC = TFC / Q or AFC = AC - AVC

Marginal cost

The addition to total cost of producing one extra unit of output MC = change in tc / change in q

total revenue

the income received from selling a given level of output TR = P x Q

average revenue

the income received from selling a single unit AR = TR / Q

Marginal Revenue

The addition to total revenue of selling one additional unit MR = change in TR / change in Q