Micro Flashcards
How do you calculate Marginal utility
Change in total utility / change in no. Of units consumed
How do you calculate PED
%change in Qd/
%change in P
How do you calculate YED
%change in Qd/
%change in Y
How do you calculate XED
%change in Qd of A/
%change in P of B
How do you calculate PES
%change in Qs/
%change in P
How do you calculate MSB for consumption externalities
MSB = MPB + MEB
How do you calculate the MSC for production externalities
MSC = MPC + MEC
What is the calculation for profit
Total rev - total costs
How do calculate revenue
P x Q
How do you calculate profit per unit
AR - AC
How do you calculate average revenue
AR = TR / Q
How do you calculate marginal revenue
Change in TR / change in Q
How do you calculate total costs
TVC + TFC
How do you calculate average total cost
TC / Q
How do you calculate average fixed cost (AFC)
TFC / Q
How do you calculate average variable cost (AVC)
TVC / Q
How do you calculate Average Product (= output per person, or productivity)
Total output / No. Of workers
How do you calculate Marginal cost
Change in TC / change in Q
How do you calculate Marginal Revenue Product
MRP = MPP (marginal physical product) x price
How do you calculate the Wage Elasticity of Demand for Labour
WED[L] = % change in Q of L demanded /
% change in W
How do you calculate the Wage Elasticity of Supply of Labour
WES[L] = % change in Q of L supplied /
% change in W
