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

9. MR MC MC P
P = MR q
Output

10. Fig. A MC
ATC
AVC a P c b q

11. 10 MC 9
ATC 8 7
AVC 6 5 4 3 2 1 1 2 3 4 5 6 7 8 9 10

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

13. Fig. B MC
ATC
AVC b c P a q

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

16. 10 MC 9
ATC 8 7
AVC 6 5 4 3 2 1 1 2 3 4 5 6 7 8 9 10

17. 10 MC 9
ATC 8 7
AVC 6 5 4 3 2 1 1 2 3 4 5 6 7 8 9 10