Cost, Revenue, Product, & Profit Vocabulary - Custom Scholars
Home » Flash Cards » Cost, Revenue, Product, & Profit Vocabulary

# Cost, Revenue, Product, & Profit Vocabulary

question
explicit cost
The monetary payment made by a firm to an outsider to acquire an input
question
implicit cost
The income sacrificed by a firm that uses a resource it owns
question
economic cost
The sum of explicit and implicit costs, also equal to a firm's total opportunity costs
question
total variable cost (TVC)
Costs that vary (change) as output changes; arise from the use of variable inputs
question
total fixed cost (TFC)
Costs that do not change as output changes; arise from the use of fixed inputs
question
total cost (TC)
The sum of fixed and variable costs
question
average fixed cost (AFC)
Fixed cost per unit of output
question
average variable cost (AVC)
Variable cost per unit of output
question
average total cost (ATC)
Total cost per unit of output
question
marginal cost (MC)
The change in cost arising from one additional unit of output
question
long-run average total cost (LRATC) curve
A curve showing the lowest possible average cost that can be attained for any level of output when all firms inputs are variable
question
total product (TP or Q)
The total amount of product (output) produced by a firm
question
marginal product (MP)
question
average product (AP)
Product per unit of variable input
question
total revenue (TR)
The total earnings of a firm from the sale of its output
question
marginal revenue (MR)
The additional revenue of a firm arising from the sale of an additional unit of output
question
average revenue (AR)
Revenue per unit of output
question
economic profit
Total revenue minus economic costs (or total opportunity costs, or the sum of explicit plus implicit costs)
question
normal profit
The minimum amount of revenue required by a firm so that it will be induced to keep running, which is that part of revenue that covers implicit costs, including entrepreneurship (after all explicit costs have been covered)
question
Formula for TC
TC=TFC + TVC
question
Formula for AFC
AFC=TFC/Q
question
Formula for AVC
AVC=TVC/Q
question
Formula for ATC
ATC=AFC+AVC
question
Formula for MC
MC= change in TC/change in Q = change in TVC/change in Q
question
Formula for MP
MP=change in TP/change in units of variable input
question
Formula for AP
AP=TP/units of variable input
question
Formula for TR
TR=P x Q
question
Formula for MR
MR=change in TR/change in Q
question
Formula for AR
AR=TR/Q
question
Formula for TFC
TFC=TC-TVC or AFC x Q
question
Formula for TVC
TVC=TC-TFC
1 of 31
question
explicit cost
The monetary payment made by a firm to an outsider to acquire an input
question
implicit cost
The income sacrificed by a firm that uses a resource it owns
question
economic cost
The sum of explicit and implicit costs, also equal to a firm's total opportunity costs
question
total variable cost (TVC)
Costs that vary (change) as output changes; arise from the use of variable inputs
question
total fixed cost (TFC)
Costs that do not change as output changes; arise from the use of fixed inputs
question
total cost (TC)
The sum of fixed and variable costs
question
average fixed cost (AFC)
Fixed cost per unit of output
question
average variable cost (AVC)
Variable cost per unit of output
question
average total cost (ATC)
Total cost per unit of output
question
marginal cost (MC)
The change in cost arising from one additional unit of output
question
long-run average total cost (LRATC) curve
A curve showing the lowest possible average cost that can be attained for any level of output when all firms inputs are variable
question
total product (TP or Q)
The total amount of product (output) produced by a firm
question
marginal product (MP)
question
average product (AP)
Product per unit of variable input
question
total revenue (TR)
The total earnings of a firm from the sale of its output
question
marginal revenue (MR)
The additional revenue of a firm arising from the sale of an additional unit of output
question
average revenue (AR)
Revenue per unit of output
question
economic profit
Total revenue minus economic costs (or total opportunity costs, or the sum of explicit plus implicit costs)
question
normal profit
The minimum amount of revenue required by a firm so that it will be induced to keep running, which is that part of revenue that covers implicit costs, including entrepreneurship (after all explicit costs have been covered)
question
Formula for TC
TC=TFC + TVC
question
Formula for AFC
AFC=TFC/Q
question
Formula for AVC
AVC=TVC/Q
question
Formula for ATC
ATC=AFC+AVC
question
Formula for MC
MC= change in TC/change in Q = change in TVC/change in Q
question
Formula for MP
MP=change in TP/change in units of variable input
question
Formula for AP
AP=TP/units of variable input
question
Formula for TR
TR=P x Q
question
Formula for MR
MR=change in TR/change in Q
question
Formula for AR
AR=TR/Q
question
Formula for TFC
TFC=TC-TVC or AFC x Q
question
Formula for TVC
TVC=TC-TFC

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

## Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.