Short Run Cost Flashcards
1
Q
Average Total Cost (ATC)
A
=TC/Q
or
=AFC+AVC
2
Q
Average Fixed Cost (AFC)
A
=TFC/Q
3
Q
Average Variable Cost (AVC)
A
=TVC/Q
4
Q
Total Fixed Cost (TFC)
A
=AFC-Q1
or
=TC-TVC
5
Q
Total Variable Cost (TVC)
A
=AVC x Q1
6
Q
Total Cost (TC)
A
=ATC x Q1
7
Q
How do you know these costs represent the short run?
A
The gap between ATC & AVC lets us know that it’s a short run.
