# data[].attributes.body
Total revenue-Total cost = accounting profit

accounting profit - implicit costs = economic profit

explicit costs: costs that are paid for

positive economic profit good, negative economic profit bad

implicit costs: included in economic profit, the opportunity cost of what could be done

normal profit: when economic profit is 0

Total revenue = price * quantitiy

# data[].attributes.body
MR = change in TR/ change in Q
MC = change in TC/ change in Q

optimal output rule: maximizes profit when *MR=MC*

Price is the same thing as MR

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fixed input: quantity is fixed, can't be changed

variable input: quantity can be changed

long run: all inputs can be varied

short run: at least one input is fixed

marginal product: change in Q of output/ change in Q of labor

law of diminishing returns for an input when an input is increased holding all other inputs constant (why the graph at the bottom slows to almost level)

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TC=FC + VC
fixed cost: cost doesn't depend on quantity, fixed

variable cost: cost that depends on quantity, changes

The slope of the total cost curve is marginal cost

ATC=TC/Q

AFC=FC/Q

AVC=VC/Q

spreading effect: the more units produced, the quantity is larger, leading to a lower average fixed cost

diminishing returns effect: the more units produced, the quantity is larger, leading to variable inputs increasing, so the average variable cost will increase.

# data[].attributes.body
In the long run, a firm's fixed cost becomes a variable cost

A sunk cost is non recoverable, and it is a cost that should be ignored