Abbreviation Meaning Formula
AFC Average Fixed Cost AFC = TFC / Y
AVC Average Variable Cost AVC = TVC / Y
ATC Average Total Cost ATC = TC / Y or AFC + AVC
APP or AP Average (Physical) Product APP = TPP/x or Y/X
AR Average Revenue AR = Py or TR/Y
ARP Average Revenue Product ARP = APP (Py)
MC Marginal Cost MC = (TC / (Y or (TVC/(Y
MFC Marginal Factor Cost MFC = Px
MPP or MP Marginal (Physical) Product MPP = (Y / (X
MR Marginal Revenue MR = Py or (TR / (Y
MRP Marginal Revenue Product MRP = MPP (Py)
( Profit ( = TR - TC
Py Price of Output
Px Price of Input
TFC Total Fixed Cost TFC = sum of all fixed costs
TVC Total Variable Cost TVC = X(Px)
TC Total Cost TC = TFC + TVC
TPP or TP Total (Physical) Product TPP = Y
TR Total Revenue TR = Y(Py)
TRP Total Revenue Product TRP = TPP (Py)
X Input
Y Output
Change in
Marginal: additional, extra, change
Factor: input, resource
Product: output
