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TC, TVC, TFC

TC, TVC, TFC. TFC. 0. Q 1. Q 2. Q. ATC. MC. AVC. AFC. 0. Q. 10. MC. 9. ATC. 8. 7. AVC. 6. 5. 4. 3. 2. 1. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 10. MC. 9. ATC. 8. 7. AVC. 6. 5. 4. 3. 2. 1. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Profit Maximization:.

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TC, TVC, TFC

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  1. TC, TVC, TFC TFC 0 Q1 Q2 Q ATC MC AVC AFC 0 Q

  2. 10 MC 9 ATC 8 7 AVC 6 5 4 3 2 1 1 2 3 4 5 6 7 8 9 10

  3. 10 MC 9 ATC 8 7 AVC 6 5 4 3 2 1 1 2 3 4 5 6 7 8 9 10

  4. Profit Maximization: Profit = Total Revenue - Total Cost Total Revenue (TR) = P × Q Average Revenue (AR) = TR÷Q =

  5. Marginal Revenue: It measures the change in total revenue generated by one additional unit of goods or services.

  6. Weekly Revenue and Cost Data for a Gold Miner Price of Gold = $600 / oz

  7. MR MC MC P P = MR 0 q Output

  8. Fig. A MC ATC AVC a P c b q 0

  9. 10 MC 9 ATC 8 7 AVC 6 5 4 3 2 1 1 2 3 4 5 6 7 8 9 10

  10. Fig. C MC ATC AVC b c P a n m 0 q

  11. Fig. B MC ATC AVC b c P a 0 q

  12. 10 MC 9 ATC 8 7 AVC 6 5 4 3 2 1 1 2 3 4 5 6 7 8 9 10

  13. 10 MC 9 ATC 8 7 AVC 6 5 4 3 2 1 1 2 3 4 5 6 7 8 9 10

  14. 10 MC 9 ATC 8 7 AVC 6 5 4 3 2 1 1 2 3 4 5 6 7 8 9 10

  15. 10 MC 9 ATC 8 7 AVC 6 5 4 3 2 1 1 2 3 4 5 6 7 8 9 10

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