economics.

Concept Definition Equation Short Run Costs that do not chance with output (TP or Q] even if TP Total Fixed Cost (TFC] is zero Average Fixed Cost (AFC) Total fixed cost (TFC) per unit of output (TP or Q) AFC = TFC/Q Short Run and Long Run Total Variable Cost (TVC) Costs that vary with output (TP) Average Variable Cost (AVC) Total variable cost (TVC) per unit of output (TP or () AVC = TVC/Q The total cost of all inputs used by a firm in production. Total Cost (TC) This includes total fixed cost (TFC) and total variable cost TC - TFC(short-run) - TVC (TVC) Average Total cost (ATC) Total cost (TC) per unit of output (TP or Q) ATC = TC/Q or ATC - AFC - AMC The increase in total cost [TC] that results from Marginal Cost (MC) MC -(Change in TC)/Change in Q) producing one more unit of output (TP or Q) Long Run Average total cost (ATC) when a plant size has been Long-run Average Total Cost (LRAC) chosen such that ATC is minimized for each level of outputAverage Average Total Marginal Average Fixed Variable Average Fixed Variable Marginal Labor Ovens Product Product Product Cost Cost Total Cost Total Cost Cost Cost Cost 0.00 $ 400.00 GOD.CO 200 600.00 600.00 $ 1,200.00 6.00 3.00 3.00 250 216.00 6 600.00 5 1,200.00 (T) 1.33 2.67 2.40 150 200.00 & 600 00 $ 1,500.00 5 2,400.00 4.00 725 125 12) $ 2,400,00 5 3,000.00 0.83 3.31 825 (d) (m) 5 3,600.00 0.75 900 150.00 () $ 3.600.00 5 4,200.00 4.67 Ivi 5.00 950 185.71 10) (n) $ 4,600.00 5.05 0) 4.42 12 00 9750) 121 88 5 600.00 8 4,800,00 5 5,400.00 0.62 4.92 24.00 665 GOO.00 Co) 5 6,000.00 0.60 5.41 8 26/00 101.00 $ 900.00 $ 6,000/00 141 6.53 0.50 6.94 $ 54.65 Shape of the Curve Illustration