Summary calculations for cost of production (updated version)

Updated version

Profit = TR - TC

= (P × Q) - TC

= (P × Q) - (TFC + TVC)

= (P × Q) - TFC - TVC

= (P × Q) - (ATC × Q)

TR = P × Q

= Profit + TC

= MR × Q

= AR × Q

P = TR ÷ Q

= MR or ∆TR ÷ ∆Q (Applicable under perfect competition)

= AR or TR ÷ Q

= MC or ∆TC ÷ ∆Q (Profit maximization of perfect competition)

Quantity = TR ÷ Q

= Qs = Qd (Market equilibrium)

MC = ∆TR ÷ ∆Q

= MR (maximization rule)

MR = ∆TR ÷ ∆Q

= MC (Maximization rule)

= AR (Applicable under perfect competition)

TFC = Q = 0

=TC - TVC

= AFC × Q

TVC = TC - TFC

= AVC × Q

TC = TFC + TVC

= ATC × Q

= TR - Profit

AFC = TFC ÷ Q

= ATC - AVC

= (TC - TVC) ÷ Q

AVC = TVC ÷ Q

= ATC - AFC

= (TC - TFC) ÷ Q

ATC = TC ÷ Q

= AFC + AVC

= (TFC + TVC) ÷ Q