Microeconomics Cost Formulas

Average Total Cost (ATC)
Total Cost/Output
Average Variable Cost (AVC)
Total Variable Cost/Output
Average Fixed Cost (AFC)
ATC – AVC
Total Cost
(AVC + AFC) x Output
Total Variable Cost
AVC x Output
Total Fixed Cost
TC – TVC
Marginal Cost
Change in TC/Change in Output
Marginal Product
Change in TP/Change in Variable Factor
Marginal Revenue
Change in TR/Change in Output
Average Product
TP/Variable Factor
Total Revenue
Price x Quantity
Average Revenue
TP/Output
Total Product
AP x Variable Factor
Economic Profit
TR – TC > 0
Economic Loss
TR – TC < 0
Break Even Point
AR = ATC
Profit Maximizing Condition
MR = MC