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3 Tutorials that teach Cost: Total, Marginal and Average
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Cost: Total, Marginal and Average

Cost: Total, Marginal and Average

Author: Catherine Barry
Description:

This lesson will explain Cost: Total, Marginal and Average

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Tutorial
Terms to Know
Average Cost

Total cost divided by quantity.

Marginal Cost

Additional cost incurred when producing one additional product.

Total Cost

Variable costs plus fixed costs.

Formulas to Know
Accounting Profit

P r o f i t space equals space T R space minus space T C

Average Total Cost

A T C space equals space T C space divided by Q
A T C space equals space A F C space plus thin space A V C

Marginal Cost

M C space equals space fraction numerator increment T C over denominator increment Q end fraction equals fraction numerator C h a n g e space i n space T o t a l space C o s t over denominator C h a n g e space i n space Q u a n t i t y end fraction

Total Cost (2)

T C space equals space F C space left parenthesis f i x e d space c o s t s right parenthesis space plus thin space V C space left parenthesis v a r i a b l e space c o s t s right parenthesis