Fixed costs (overheads): costs that do not vary

with the level of output, such as rent, business rates,

advertising, insurance premiums, interest payments,
Variable costs: costs that change when out put
etc.
levels change, such as costs of raw materials,
packaging, fuel, and labor. more output -> fixed cost remains the same.
fixed costs still have to be met even if the firm
more output -> variable costs increase.
produces nothing.
less / no output -> variable costs = 0.
fixed costs may fall because you are sharing
between more units. The more the firms makes ->
the cheaper it's going to be per unit.

Average costs: the cost of producing a single unit

Total costs: fixed cost and variable cost added Costs - expenses that must be met when of output.
together. setting up and running a business. Average cost = total cost / quatity produced

Calculating profit: difference between total revenue

and total cost.
Total revenue: money generated from the sale of
Profit = total revenue - total cost output. It is price multiplied by quantity.
Total revenue = price x quantity