study session Flashcards
1
Q
formula for average varible cost (AVC)
A
TVC/P
2
Q
Formula for average fixed cost (AFC)
A
TC/Q = TVC/Q+FC/Q
3
Q
fixed inputs
A
short run
4
Q
variable inputs
A
long run
5
Q
accounting profit
A
= revenue - explicit costs
6
Q
economic profit
A
= accounting profit - implicit costs
7
Q
implicit costs
A
land, labor, capital, talent (entreprenurialbility normal profit) of entreprenure
