profit consists of the sum of the fixed and variable costs for any given level of production.
profit consists of the sum of the fixed and variable costs for any given level of production.
consist of the sum of the fixed and variable costs for any given level of production?
profit
average cost









































in economics, average cost or unit cost is equal to total cost (tc) divided by the number of units of a good produced (the output q):









































it is also equal to the sum of average variable costs (total variable costs divided by q) and average fixed costs (total fixed costs divided by q). average costs may be dependent on the time period considered (increasing production may be expensive or impossible number in the short term, for example). average costs affect the supply curve and are a fundamental component of supply and demand.









































section::::short-run average cost.
average cost
variable costs are costs that change as the quantity of the good or service that a business produces changes. variable costs are the sum of marginal costs over all units produced. they can also be considered normal costs. fixed costs and variable costs make up the two components of total cost. direct costs are costs that can easily be associated with a particular cost object. however, not all variable costs are direct costs. for example, variable manufacturing overhead costs are variable costs that are indirect costs, not direct costs. variable costs are sometimes called unit-level costs as they vary with the number of units produced.
variable cost