Relationship among TR, AR and MR Curves:
(i) When marginal revenue is positive, total revenue rises, when MR is zero the total revenue becomes maximum".
(ii) When marginal revenue becomes negative total revenue starts falling.
(iii) When AR and MR both are falling, then MR falls at a faster rate than AR.

Average Variable Cost (AVC) :
(i) Average Variable Cost refers to the total variable cost per unit of output.
(ii) It is obtained by dividing total variable cost by the quantity of output.
AVC = TVC / Q

Total Variable Cost :
(i) All payments to the variable factors of production is called as Total Variable Cost.
(ii) As output increases 'Total Variable Cost' also increases.

Cost analysis refers to the study of behaviour of cost in relation to one or more production criteria, namely size of output, scale of production, prices of factors and other economic variables.

i) Cost of Raw materials.
ii) Fuel cost.
iii) Electricity charges.
iv) Wages of temporary workers.

It refers to all expenses that are directly associated with business activites, but not with asset creation. Floating cost is necessary to run the day-to-day business of a firm.

The relationship between the marginal and the average cost is more a Mathematical one rather than economic

Payment made to the use of resources summation of explicit and implicit cost

(i) Marginal Revenue is the addition made to the total revenue by the sale of an additional unit of a commodity.
(ii) MR_n = TR_n - TR_n-1

(i) All costs that vary with output, together with the costs of administration are known as prime cost.
(ii) In short, prime cost = variable costs + cost of administration.

It is the payment made for the efforts, pain and sacrifices of all factor owners in production.

Payment made to others for the purchase of factors of production is known as explicit cost. It is also called accounting cost or out of pocket cost.

The amount of money that a producer receives in exchange for the sale of goods is revenue.

C = F(Q) the functional relationship between cost and output is cost function. When output increases, Cost increases.

Cost refers to cost of production i.e. the total expenses incurred in the production of a commodity. Cost depends on output, scale of production, prices of factors.