Production and Costs and Revenue

1

2

3

4

5

6

7

8

9

10

11

12

TP

TFC

TVC

AFC

AVC

TC

MC

ATC

P

TR

MR

+P/-L

0

100

-

-

100

-

-

50

-

-

-

1

100

120

50

2

130

50

3

136

50

4

140

50

5

150

50

6

65

50

7

90

50

8

120

50

9

160

50

10

220

50

11

298

50

12

393

50

Definitions:

TP = Total Product (i.e., Quantities produced)

TFC = Total Fixed Cost

TVC = Total Variable Cost

AFC = Average Fixed Cost

AVC = Average Variable Cost

TC = Total Cost

MC = Marginal Cost

ATC = Average Total Cost

P = Price

TR = Total Revenue

MR = Marginal Revenue

+P/-L = Profit/Loss where +P is a Profit and -L is a Loss