Where TC is Total Cost, x is number of units, TFC is Total Fixed Cost and TVC is Total Variable Cost
If demand of item depends on the price of the item If price of the item depends on the deman of the item Where x is demand of the item in x units and p is the price per unit
Where AR is Average Revenue
Average profit
Rate of change of total cost with respect to x (number of units of product) Note:- MC is the approximate cost of one additional unit of output
Average Cost MAC is the rate of change of average cost (AC)with respect to x
Note:- MR is the approximate revenue of one additional unit of sale of product
p is determined by market and not by producer hence p is constant which implies that
p generally decreases with x which implies that
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