Calculations Flashcards
1
Q
Rule of 70
A
Growth rate/70 = time taken for an economy to double in size
2
Q
Production Function
A
=Af(L,K,H,N)
3
Q
Total cost function
A
TC(q)=FC+VC(q) (FC=fixed cost, VC=variable cost, q= level of output)
4
Q
Average cost formula
A
ATC(q)=TC(q)/q
5
Q
Average variable cost
A
VC/Q
6
Q
ATC
A
FC+VC
7
Q
AFC
A
FC/q
8
Q
AVC
A
VC/q
9
Q
MC
A
=triTC/tri Q
9
Q
MC
A
=triTC/tri Q
10
Q
PED
A
%tri qd/ %tri p
11
Q
Profit per unit
A
p-ATC(q)
12
Q
Producer surplus
A
Price-willingness to sell
13
Q
Consumer surplus
A
willingness to pay-price
