Profit
Profit is the financial gain realized when the revenue generated from business activities exceeds the expenses, costs, and taxes associated with maintaining the business.
Profit = Total Revenue – Total Cost
Financial gain or loss for a firm
Total Cost
Total cost is the sum of all expenses incurred by a business in producing and selling its goods or services.
Total Cost = Fixed Costs + Variable Costs
The sum of fixed and variable production costs
Total Revenue
Total revenue is a key financial metric representing the total income generated by a business from its sales of goods or services before any expenses are subtracted. It is a critical indicator of a company's financial health and performance.
Total Revenue = Price x Quantity
Income from selling goods or services
Marginal Revenue
Marginal revenue is the additional income generated from selling one more unit of a good or service. It is a crucial concept in economics and business, particularly in understanding the relationship between total revenue and the quantity of goods sold.
Marginal Revenue = Change in Total Revenue / Change in Quantity
Additional revenue from selling one more unit
Average Revenue
Average revenue is the revenue earned per unit of output sold. It is calculated by dividing the total revenue by the quantity of units sold.
Average Revenue = Total Revenue / Quantity Sold
Average income per unit sold
Average Variable Costs
Average Variable Costs = Variable Costs / Quantity
Variable cost per unit of output
Average Fixed Costs
Average Fixed Costs = Fixed Costs / Quantity
Fixed cost per unit of output
Total Average Cost
Total Average Cost = Total Cost / Quantity
Average cost per unit of output
Unemployment Rate
Unemployment Rate = (Number of Unemployed / Labor Force) x 100
Percentage of unemployed people in the labor force