formulas Flashcards
GDP per capita
GDP/population
average product of labour
total output/total workers
net benefit
direct benefit - direct costs
economic cost
direct cost + opportunity cost
economic rent
net benefit - opportunity cost
innovation rent
profit after new technology - profits with original technology
cost of production
wage x workers + price x quantity produced
slope of an isocost line
- wage / price
gini coefficient
1/2 (average difference in income)/(average income)
isoprofit slope
- (price - marginal cost) x quantity
total cost
quantity x marginal cost + fixed costs
total revenue
price x quantitiy
total profit
total revenue - total costs
average costs
total costs / total output
elasticity of demand
- price / quantity x 1/slope
-%change in demand/%change in price
total profit
Quantity x price - quantity x marginal cost _ fixed costs
Marginal profit
marginal revenue - marginal costs
marginal social costs
marginal private cost + marginal external cost
