Costs, Revenues and Profits formulas

Total, fixed and variable costs

TC = FC + VC

Average cost/unit cost

AC = TC / Q

or

AC = AFC + AVC

Total cost definition

The amount spent on producing a given level of output

Variable/fixed cost definition

Production expenses dependent/independent on the level of output

Average cost definition

The amount spent on producing a single unit

Average variable/fixed cost definition

Unit costs which are dependent/independent on level of output

Marginal cost definition

The addition to total cost of producing one addition unit of output

Marginal cost formula

MC = ΔTC / ΔQ

Total revenue definition and formula

The income received from selling a given level of output

TR = P x Q

Average revenue definition and formula

The income received from selling a single unit

AR = TR / Q

Marginal revenue definition and cost

The addition to total revenue of selling one additional unit of output

MR = ΔTR / ΔQ