2. Key Terms
total cost
profit
explicit costs
implicit costs
economic profit
accounting profit
production function
marginal product
diminishing marginal
product
fixed costs
variable costs
average total costs
average fixed costs
average variable costs
marginal costs
efficient scale
economies of scale
diseconomies of scale
constant returns to scale
64. Break Even Analysis
Qty
SAR
Fixed Cost - must pay
regardless of quantity
Variable Cost - must
pay with each increase
in quantity
65. Break Even Analysis
Qty
SAR
Total Cost = FC + VC x Qty
Fixed Cost - must pay
regardless of quantity
Variable Cost - must
pay with each increase
in quantity
66. Break Even Analysis
Qty
SAR
Total Cost = 500 + 100 x Q
Total Cost = FC + VC x Qty
Fixed Cost - must pay
regardless of quantity
Variable Cost - must
pay with each increase
in quantity
67. Break Even Analysis
Qty
SAR
Total Cost = 500 + 100 x Q
Total Cost = FC + VC x Qty
Fixed Cost - must pay
regardless of quantity
Variable Cost - must
pay with each increase
in quantity
68. Break Even Analysis
Qty
SAR
500
Total Cost = 500 + 100 x Q
Total Cost = FC + VC x Qty
Fixed Cost - must pay
regardless of quantity
Variable Cost - must
pay with each increase
in quantity
69. Break Even Analysis
Qty
SAR
500
Total Cost = 500 + 100 x Q
Total Cost = FC + VC x Qty
Fixed Cost - must pay
regardless of quantity
Variable Cost - must
pay with each increase
in quantity
70. Break Even Analysis
Qty
SAR
500
Total Cost = 500 + 100 x Q
Total Cost = FC + VC x Qty
Fixed Cost - must pay
regardless of quantity
Variable Cost - must
pay with each increase
in quantity
Fixed Cost
71. Break Even Analysis
Qty
SAR
500
Total Cost = 500 + 100 x Q
Total Cost = FC + VC x Qty
Fixed Cost - must pay
regardless of quantity
Variable Cost - must
pay with each increase
in quantity
Fixed Cost
72. Break Even Analysis
Qty
SAR
500
Total Cost = 500 + 100 x Q
Total Cost = FC + VC x Qty
Fixed Cost - must pay
regardless of quantity
Variable Cost - must
pay with each increase
in quantity
Fixed Cost
Fixed Cost
plus Variable
Cost
73. Break Even Analysis
Qty
SAR
500
Total Cost = 500 + 100 x Q
Total Cost = FC + VC x Qty
Fixed Cost - must pay
regardless of quantity
Variable Cost - must
pay with each increase
in quantity
Total Revenue = Price x Qty
Fixed Cost
Fixed Cost
plus Variable
Cost
74. Break Even Analysis
Qty
SAR
500
Total Revenue = 200 x Q
Total Cost = 500 + 100 x Q
Total Cost = FC + VC x Qty
Fixed Cost - must pay
regardless of quantity
Variable Cost - must
pay with each increase
in quantity
Total Revenue = Price x Qty
Fixed Cost
Fixed Cost
plus Variable
Cost
75. Break Even Analysis
Qty
SAR
500
Total Revenue = 200 x Q
Total Cost = 500 + 100 x Q
Total Cost = FC + VC x Qty
Fixed Cost - must pay
regardless of quantity
Variable Cost - must
pay with each increase
in quantity
Total Revenue = Price x Qty
Fixed Cost
Fixed Cost
plus Variable
Cost
76. Break Even Analysis
Qty
SAR
500
Total Revenue = 200 x Q
Total Cost = 500 + 100 x Q
Total Cost = FC + VC x Qty
Fixed Cost - must pay
regardless of quantity
Variable Cost - must
pay with each increase
in quantity
Total Revenue = Price x Qty
Fixed Cost
Fixed Cost
plus Variable
Cost
77. Break Even Analysis
Qty
SAR
500
Total Revenue = 200 x Q
Total Cost = 500 + 100 x Q
Total Cost = FC + VC x Qty
Fixed Cost - must pay
regardless of quantity
Variable Cost - must
pay with each increase
in quantity
Total Revenue = Price x Qty
Fixed Cost
Fixed Cost
plus Variable
Cost
78. Break Even Analysis
Qty
SAR
500
Total Revenue = 200 x Q
Total Cost = 500 + 100 x Q
Total Cost = FC + VC x Qty
Fixed Cost - must pay
regardless of quantity
Variable Cost - must
pay with each increase
in quantity
Total Revenue = Price x Qty
Fixed Cost
Fixed Cost
plus Variable
Cost
Loss
79. Break Even Analysis
Qty
SAR
500
Total Revenue = 200 x Q
Cost
Loss Profit
Total Cost = 500 + 100 x Q
Total Cost = FC + VC x Qty
Fixed Cost - must pay
regardless of quantity
Variable Cost - must
pay with each increase
in quantity
Total Revenue = Price x Qty
Fixed Cost
Fixed Cost
plus Variable
80. Break Even Analysis
Qty
SAR
500
Total Revenue = 200 x Q
Cost
Loss Profit
Total Cost = 500 + 100 x Q
Total Cost = FC + VC x Qty
Fixed Cost - must pay
regardless of quantity
Variable Cost - must
pay with each increase
in quantity
Total Revenue = Price x Qty
Fixed Cost
Fixed Cost
plus Variable
81. Break Even Analysis
Qty
SAR
500
Total Revenue = 200 x Q
Cost
Loss Profit
Total Cost = 500 + 100 x Q
Total Cost = FC + VC x Qty
Fixed Cost - must pay
regardless of quantity
Variable Cost - must
pay with each increase
in quantity
Total Revenue = Price x Qty
Fixed Cost
Fixed Cost
plus Variable
82. Break Even Analysis
Qty
SAR
500
Total Revenue = 200 x Q
Total Cost = 500 + 100 x Q
83. Break Even Analysis
Qty
SAR
500
Total Revenue = 200 x Q
Total Cost = 500 + 100 x Q
Total Cost = Total Revenue
84. Break Even Analysis
Qty
SAR
500
Total Revenue = 200 x Q
Total Cost = 500 + 100 x Q
Total Cost = Total Revenue
500 + 100 x Q = 200 x Q
85. Break Even Analysis
Qty
SAR
500
Total Revenue = 200 x Q
Total Cost = 500 + 100 x Q
Total Cost = Total Revenue
500 + 100 x Q = 200 x Q
500 + 100Q = 200Q
86. Break Even Analysis
Qty
SAR
500
Total Revenue = 200 x Q
Total Cost = 500 + 100 x Q
Total Cost = Total Revenue
500 + 100 x Q = 200 x Q
500 + 100Q = 200Q
500 = 100Q
87. Break Even Analysis
Qty
SAR
500
Total Revenue = 200 x Q
Total Cost = 500 + 100 x Q
Total Cost = Total Revenue
500 + 100 x Q = 200 x Q
500 + 100Q = 200Q
500 = 100Q
5 = Q
88. Break Even Analysis
Qty
SAR
500
Total Revenue = 200 x Q
Total Cost = 500 + 100 x Q
Total Cost = Total Revenue
500 + 100 x Q = 200 x Q
500 + 100Q = 200Q
500 = 100Q
5 = Q
5
89. Break Even Analysis
Qty
SAR
500
Total Revenue = 200 x Q
Total Cost = 500 + 100 x Q
Total Cost = Total Revenue
500 + 100 x Q = 200 x Q
500 + 100Q = 200Q
500 = 100Q
5 = Q
5
1000