Revenues, Costs and Profits Flashcards
1
Q
How do you calculate total revenue?
A
Price x quantity
2
Q
How do you calculate average revenue?
A
quantity sold
3
Q
How do you calculate marginal revenue?
A
change in total output
4
Q
How do you calculate average total cost?
A
quantity
or Average variable cost + average fixed cost
5
Q
How do you calculate average fixed cost?
A
quantity
6
Q
How do you calculate average variable cost?
A
quantity
7
Q
How do you calculate marginal cost?
A
change in quantity
8
Q
What is diminishing marginal productivity?
A
After a certain amount of inputs, marginal productivity increase becomes constant, then falls.
9
Q
What is the short run and long run shut down points?
A
Average revenue = Average variable cost (short run)
Average revenue no longer covers average variable cost (long run)
