| A | B |
|---|
| fixed costs | The costs that an organization incurs even if there is littl or no activity. |
| Overhead | Another term for total fixed costs |
| variable cost | The cost that changes when the business's rate of operation or output changes. |
| total cost | The sum of variable cost plus fixed cost |
| marginal cost | the extra cost of producing one additional unit of production |
| average revenue | average price that every unit of output sells for |
| total revenue | total amount earned by a firm for its sale of products |
| marginal revenue | extra revenue from the sale of one additional unit of output |
| profit maximizing quanity of output | level of production where marginal cost is equal to marginal revenue |
| break even point | production level where total cost equals total revenue |
| e-commerce | electronic business or exchange conducted over the internet |
