3.3 - Cost + Revenue Calculations Flashcards
1
Q
How is Total Revenue calculated?
A
Quantity x Price (QP)
2
Q
How is Average Revenue calculated?
A
TR/Quantity
3
Q
What is AR equivalent to?
A
Price
Average revenue per unit output
4
Q
How is Marginal Revenue calculated?
A
Change in TR/Change in Q
5
Q
How is Total Cost calculated?
A
Fixed costs + Variable costs
TFC + TVC
6
Q
How can Average Cost be calculated with output?
A
Total cost/Output
7
Q
How can Average Cost be calculated with fixed and variable cost?
A
Average Fixed + Average Variable
AFC + AVC
8
Q
How is Marginal Cost calculated?
A
Change in Total Cost/Change in Quantity
