What is the difference between monopolist average total cost and revenue and monopolist total cost and revenue

Question

What is the difference between monopolist average total cost and revenue and monopolist total cost and revenue

Answer 1

Let  Total cost be TC. TC is the sum of total variable cost (TVC) and total fixed cost (TFC).

Thus TC= TVC +TFC

Let Q be the Quantity of output.

So, the average total cost = TC/ Q = TVC/Q+TFC/Q

Total Revenue = TR= what one gets by selling the entire production

Average Revenue = TR/Q

TR- TC is the total profit.

(TR/ Q)- (TC/Q) = (TR- TC)/ Q = the average profit per unit of output