Equations Flashcards
1
Q
Total cost equation
A
Total fixed costs + Total variable costs
2
Q
Total fixed costs equation
A
Total costs - Total variable costs = Average fixed costs x quantity
3
Q
Total variable costs equation
A
Total costs - Total fixed costs = Average variable costs x quantity
4
Q
Average costs formula
A
Total costs / quantity
5
Q
Marginal costs formula
A
Change in total costs / Change in quantity
6
Q
Total revenue formula
A
Price x Quantity
7
Q
Average revenue formula
A
Total revenue / quantity = (price x quantity) / quantity = price
8
Q
Marginal revenue formula
A
Change in total revenue / change in quantity
