equations Flashcards
1
Q
revenue
(R)
A
price x quantity
P x Q
2
Q
total profit
A
revenue - cost
3
Q
how much is produced (quantity)
(Q)
A
marginal cost = marginal revenue
(MC = MR)
4
Q
equilibrium price
A
quantity supplied = quantity demanded
(qs - qd)
5
Q
equilibrium quantity
A
solve for qs and qd (should be the same)
6
Q
Average total cost
(ATC)
A
total cost / quantity
TC / Q
7
Q
profitable
A
MR > ATC
8
Q
economic profit
A
revenue - opportunity costs
9
Q
profit
A
Price(quantity) - Cost(quantity)
10
Q
A
