TVC: Variable Total Cost

TC: total cost

TC=TFC+TVC (total cost+total fixed cost = total variable cost)

AC: average cost

AFC: average fixed cost

Average variable cost

marginal cost

TP: total output

AP: average output

marginal product

TR: total income

marginal revenue

AR: average income

Television: total utility

MV: marginal utility

The construction of consumer behavior in traditional western microeconomics is based on the assumption of maximizing consumer utility. The development of consumption theory research stems from the reflection on this premise.

Extended data:

In the traditional micro-demand theory, the choice behavior of maximizing consumer utility is easy to analyze only when the consumer utility function is known and has good properties. But this is not the case in real life, because the utility or preference can not be directly observed, but only the consumer's choice behavior can be directly observed.

The basic assumption of microeconomics is that the market is clear, completely rational and fully informed, and that the market economy can be freely adjusted through the "invisible hand" to realize the optimization of resource allocation. Macroeconomics assumes that the market mechanism is imperfect, and the government has the ability to adjust the economy and correct the defects of the market mechanism through the "visible hand".

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