Implicit cost is the cost of self owned resources of the production used in production process. Or estimated value of inputs supplied by owner itself.

Implicit cost is the cost of self owned resources of the production used in production process. Or estimated value of inputs supplied by owner itself.
Total cost refers to total amount of money which is incurred by a firm on production of a given amount of a good.
Total cost is the sum of total fixed cost and total variable cost.
TC = TFC + TVC  or  TC = AC × Q

Total fixed cost remains constant at all levels of output. It is not zero even at zero output level. Therefore, TFC curve is parallel to OX-axis.
TFC = TC – TVC  or  TFC = AFC × Q

Total variable cost is the cost which vary with the quantity of output produced. It is zero at zero level of output. TVC curve is parallel to TC curve.
TVC = TC – TFC  or  TVC = AVC × Q

Average cost is per unit of production of a commodity. It is the sum of average fixed cost and average variable cost.
AC =
TC
or  AC = AFC + AVC
Q



Average fixed cost is per unit of fixed cost of production of a commodity.
TFC
AFC =  Qor  AFC = AC – AVC
Per unit of variable of production of a commodity is called average variable cost.
TVC
AVC =  Qor  AVC = AC – AFC
MC-It refers to change in TC, due to additional unit of a commodity is produced. MC = DTC/DQ or MCn = TCn – TCn–1. But under short run, it is calculated from TVC.
TVCMCn TVCn– TCn–1 or MC  

Q

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