calculation of production function Flashcards
1
Q
AVC?
A
AVC= TVC/Y
2
Q
MC?
A
MC= change in TC/ change in Y
in this case it was: change in TVC/extra piglets
the addtional cost to make one extra piglet
3
Q
MR =?
A
MR= change in revenue/change in quantitiy
the revenue the farmer can get from one extra piglet
4
Q
Profitable when?
A
when MC=MR
5
Q
TVC=?
A
no. of visits x net return from 1 extra piglet
6
Q
AFC=
A
TFC/Y
7
Q
TC=?
A
TVC+TFC
8
Q
ATC=?
A
AFC+AVC
9
Q
Profit =
A
TR-TVC
10
Q
TR= ?
A
difference in pigs weaned per sow (x2-x1) x number of pigs x net return per pig
