Microeconomic Decision Makers - firms Flashcards
1
Q
Average cost
A
total cost divided by total output
2
Q
Average fixed cost
A
total fixed cost divided by the total output. the graph is a rectangular parabola
3
Q
Average revenue
A
Total revenue divided by the number of products sold
4
Q
Average variable cost
A
Total variable cost divided by the quantity of goods and services produced. the graph has a shape of a smiley face parabola
