COSTS OF PRODUCTION

Fixed cost: a cost that does not change no matter how much is produced (mortgage)

Variable cost: a cost that rises or falls depending on how much is produced. (electricity bill)

total costs: fixed cost + variable costs

Marginal revenue: the additional income from selling one or more unit of a good.

Marginal cost: is the cost of producing one or more unit of a good.

total revenue: Price x Quantity

Formulas
TFC+TVC=TC
AFC+ AVC=ATC
TFC/Q=AFC
TVC/Q=AVC
TC/Q= ATC
TFC= AFC/Q
TC=AC
MC= CURRENT TOTAL COST - TOTAL CURRENT.