Economics IGCSE Edexcel - Production cost and revenue

This is very simple:

Fixed cost- cost independent of output and generally remains constant. E.g. rent. They are sometimes called overheads.

Variable cost- cost that changes with output. E.g. raw materials, packaging, labour.

Total cost = Fixed cost + Variable cost

Average cost = Total cost / number of goods produced

Price- cost of buying one product

Revenue = price * number of units sold

Profit = revenue - total cost