IB economics calculations Flashcards
1
Q
Revenue maximisation point
A
MR = 0
2
Q
Profit maximisation point
A
MC = MR
3
Q
Profit
A
Total revenue - total cost
4
Q
Supernormal profit
A
Average revenue > average costs
5
Q
Subnormal profit
A
Average revenue < average costs
6
Q
Normal profit
A
Average revenue = average costs
7
Q
Allocative efficiency
A
Price = Marginal cost (MSB = MSC)
8
Q
Total revenue
A
Price x quantity
9
Q
Average revenue
A
Total revenue / quantity of output
10
Q
Marginal revenue
A
Change in total revenue / change in quantity
11
Q
Average cost
A
Total cost / quantity (AFC+AVC)
12
Q
Marginal cost
A
Change in total cost / change in quantity
13
Q
Index number
A
(current value / raw value base year) x 100
14
Q
Percentage change (New value - old value) / old value x 100
A
(New value - old value) / old value x 100
15
Q
GDP - output approach
A
Value of all goods and services
