1.2.16 Business costs, revenues and profits

• What is the formula for total costs?


  total fixed costs + total variable costs
• What is the formula for Avg costs?

  Total costs / quantity produced
• What is the formula for total revenue?

  Price x Quantity
• What is the formula for profit?

  total revenue - total cost
• What are costs?


  expenses that must be met when setting up and running a firm
• What are fixed costs?

  costs that don't change depending on output
• What are variable costs?

  costs that change depending on output
• What are total costs?

  all costs added together