Total

Output & Total Cost

Sales per (TC) $/hr
Hour (Q)

0
1
2
3
4
5
6
7
8
9
10

5
9
11
12
14
18
24
32
42
54
68

Market
Price (P)

10
10
10
10
10
10
10
10
10
10
10

Total
Revenue
(TR)

Total
Ave Total
Economic
Cost (ATC)
Profit

P*Q

TR-TC

TC/Q

0
10
20
30
40
50
60
70
80
90
100

-5
1
9
18
26
32
36
38
38
36
32

9
5.5
4
3.5
3.6
4
4.57
5.25
6
6.8

The total cost at Q = 0 is 5, which is a fixed cost.

Average variable cost = (Total cost - fixed cost)/Q

Ave
Variable
Cost
(AVC)

4
3
2.33
2.25
2.6
3.17
3.86
4.63
5.44
6.3

Marginal
Cost (MC)

Marginal
Revenue

change in
TC/ change
in Q

change in
TR/ change
in Q

4
2
1
2
4
6
8
10
12
14

10
10
10
10
10
10
10
10
10
10