FORMULAS Flashcards
1
Q
TOTAL REVENUE (TR)
A
QUANTITY * PRICE
2
Q
AVERAGE TOTAL COST (ATC)
A
(TOTAL COST/QUANTITY)
3
Q
AVERAGE VARIABLE COST (AVC)
A
(TOTAL VARIABLE COST/QUANTITY)
4
Q
AVERAGE FIXED COST (AFC/FC)
A
AVERAGE TOTAL COST - AVERAGE VARIABLE COST
5
Q
TOTAL COST (TC)
A
(AVC + AFC) * OUTPUT
6
Q
TOTAL FIXED COST (TFC)
A
TOTAL COST - TOTAL VARIABLE COST
7
Q
MARGINAL COST (MC)
A
(CHANGE IN TOTAL COSTS/CHANGE IN QUANTITY)
8
Q
MARGINAL REVENUE (MR)
A
(CHANGE IN TOTAL REVENUE/CHANGE IN QUANTITY)
9
Q
TOTAL REVENUE (TR)
A
PRICE * QUANTITY
10
Q
PROFIT MAXIMIZING CONDITION
A
MR = MC
11
Q
LOSS
A
TR - TC < 0
12
Q
ECONOMIC PROFIT
A
TR - TC > 0
13
Q
REAL GDP
A
(NOMINAL GDP/GDP DEFLATOR) * 100
(NOMINAL GDP/PRICE INDEX) * 100
14
Q
NOMINAL GDP
A
(REAL GDP/GDP DEFLATOR) * 100
(REAL GDP/PRICE INDEX) * 100
