Total Revenue & Total Cost
Cost Curves & Profit Maximization
Price / MR
MC (Marginal Cost)
ATC (Avg Total Cost)
AVC (Avg Variable Cost)
Profit Max (MR=MC)
📈 Market Price
Price (P) $15.00
P = MR = AR (price taker)
🔧 Cost Structure
Fixed Cost (FC) $30
Linear Cost (a) $8.00
Quadratic (b) -0.60
Cubic (c) - Curvature 0.040
TC = FC + aQ + bQ² + cQ³
MC = a + 2bQ + 3cQ²
📊 Optimal Decision
Optimal Q*
—
Total Revenue
—
Total Cost
—
ATC at Q*
—
AVC at Q*
—
MC at Q*
—
Economic Profit
—
Decision: Adjust parameters to see the firm's optimal choice.