Quantitive Skills Flashcards
What is percentage change equation?
New value - original value/ original value x 100
What is percentage point?
Difference between two percentages rather than whole numbers
How is percentage point calculated?
Minus two values and the result will tell you fall or rise
How is mean average calculated?
Add up all values as divide them by the total of values
How is median average calculated?
Arrange the values from smallest to largest then identify the middle number. If there are two, take the mean of them
How is interquartile range calculated?
Subtract the value of the lower quartile from the value of the upper quartile
How is weighted index numbers calculated?
Multiply the eight by price index for each category, add these together then divide by 1000
What is a fixed cost?
It is a cost that doesn’t change with output
What is a variable cost?
It is a cost which changes the more you output
Which costs are applicable to short run costs?
Fixed and variable costs
What law is lead to when dealing with short run costs?
The law of diminishing marginal returns
What is long run average cost?
It is the cost per unit of output when all factors of production are variable
Is there fixed inputs with long run average costs?
No as all long run costs are variable and the scale of production can change
What is marginal cost?
It is the cost of producing each additional unit of output and is determined by the law of diminishing marginal returns
How is total revenue calculated?
TR = price per unit x quantity
