formulas Flashcards
1
Q
GDP per capita
A
GDP/population
2
Q
average product of labour
A
total output/total workers
3
Q
net benefit
A
direct benefit - direct costs
4
Q
economic cost
A
direct cost + opportunity cost
5
Q
economic rent
A
net benefit - opportunity cost
6
Q
innovation rent
A
profit after new technology - profits with original technology
7
Q
cost of production
A
wage x workers + price x quantity produced
8
Q
slope of an isocost line
A
- wage / price
9
Q
gini coefficient
A
1/2 (average difference in income)/(average income)
10
Q
isoprofit slope
A
- (price - marginal cost) x quantity
11
Q
total cost
A
quantity x marginal cost + fixed costs
12
Q
total revenue
A
price x quantitiy
13
Q
total profit
A
total revenue - total costs
14
Q
average costs
A
total costs / total output
15
Q
elasticity of demand
A
- price / quantity x 1/slope
-%change in demand/%change in price
