Aggregate Cost Calculator

Formula

The formula to calculate the Aggregate Cost (AC) is:

\[ AC = EI - GI \]

Where:

$ EI $ is the total economic income ($).
$ GI $ is the government income and subsidies ($).

Example

Let's say the total economic income ($ EI $) is $500,000 and the government income and subsidies ($ GI $) is $150,000. Using the formula:

\[ AC = 500,000 - 150,000 \]

We get:

\[ AC = 350,000 \text{ dollars} \]

So, the Aggregate Cost ($ AC $) is $350,000.

What is Aggregate Cost?

Aggregate cost refers to the total cost incurred by an entity, taking into account both the total economic income and the government income and subsidies. It is calculated by subtracting the government income and subsidies from the total economic income. This measure is important for understanding the net cost or expenditure of an entity.