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Jimmy Bartlett just got some computer software free of charge.When he installed the program and ran it the first time,it displayed a copyright notice and a message saying that he could use the software for thirty days with no charge,but should send $40 to the software developer if he continues using the program after the trial period.The type of software Jimmy is using is known as shareware.
Break-even Point
The point at which total cost and total revenue are equal, meaning there is no profit or loss.
Average Total Cost (ATC)
Total cost divided by output.
Average Variable Cost (AVC)
Variable cost divided by output.
Average Total Cost
The total cost of production divided by the quantity produced, indicating the average cost per unit of output.
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