Cost, Revenue, and Profit Maximization Review

Marginal Revenue Extra revenue from the sale of one additional unit Fixed Costs Rent, executive salaries, and depreciation Marginal Costs Extra cost of producing one additional unit Total Revenue Total amount a firm earns from the sale of its products Profit Maximization State in which marginal cost equals marginal revenue Break-Even Level of production where marginal cost is equal to marginal revenue E-Commerce Type of business done over the internet with low fixed costs Total Costs Variable plus Fixed Costs