formulas for econ

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Author:
ndumas2
ID:
73922
Filename:
formulas for econ
Updated:
2011-03-19 20:50:27
Tags:
econ forumulas
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Description:
for chapter 12
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  1. Profit is
    total revenue - total cost
  2. economic profit is
    exlicit and implicit revenue - explicit and implicit cost
  3. total cost is
    total cost = fixed cost + variable cost
  4. Average fixed costs (AFC)
    equals fixed cost divided by quantity produced AFC = FC/Q
  5. Average Variable costs AVC
    equals variable cost divided by quanity produced AVC = VC/Q
  6. Average total costs (ATC)
    equals total cost divided by quantity produced ATC = TC/Q or ATC = AFC + AVC
  7. Marginal cost (MC)
    is the increase in total cost when output increases by one unit, MC = ^TC/^Q
  8. the relationship between marginal cost and average cost
    if MC > ATC,
    then ATC is rising
  9. the relationship between marginal cost and average cost
    if MC > AVC
    then AVC is rising
  10. the relationship between marginal cost and average cost
    If MC < ATC then
    ATC is falling
  11. the relationship between marginal cost and average cost
    if MC < AVC then
    then AVC is falling
  12. the relationship between marginal cost and average cost
    if MC = AVC and MC = ATC then
    then AVC and ATC are at their minimum points

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