How can we help?

You can also find more resources in our Help Center.

mbamatheconomics

STUDY
PLAY
Marginal Cost
The incremental cost of the last unit produced. Also, the first derivative of total cost with respect to quantity
Variable Cost
Costs that change with the quantity produced
Fixed Cost
Costs that do not change with the quantity produced. You can think of this as the costs of being in business. Costs that are fixed in the short term might possibly be variable over a longer time frame in which changes can be made to reorganize how a business operates.
Total Cost
The sum of fixed and variable costs for a given quantity produced
Average Cost
Cost divided by the quantity produced. Types of average cost include average total cost, average variable cost, and average fixed cost.
Marginal Revenue
The incremental revenue of the last unit sold. Typically, the marginal revenue is a constant, the market price of a product or service. Also, The first derivative of total revenue with respect to quantity. Typically, the marginal revenue is a constant, the market price of a product or service.
Total Revenue
The sum of the prices for the quantity sold. Because in most situations there is a constant market price, the total revenue is usually price times quantity.
Marginal Profit
The incremental profit of the last unit sold. This is often computed as marginal revenue minus marginal cost. Also, The first derivative of total profit with respect to quantity. This is often computed as marginal revenue minus marginal cost.
Total Profit
The sum of the profit for the quantity sold. This is often computed as total revenue minus total cost.
Demand Curve
A chart or formula of the relationship between price and quantity demanded