# Key Equations Flashcards

1
Q

Total cost

A

Total fixed cost + total variable cost

2
Q

Average costs

A

Total cost / quantity

3
Q

Marginal cost

A

Change in total cost / change in quanityt

4
Q

Average product

A

Total product / quantity of labour

5
Q

Marginal product

A

Change in total product / change in quantity of labour

6
Q

Total revenue

A

Price x Quantity

7
Q

Average revenue

A

Total revenue x Quantity (=price)

8
Q

Marginal revenue

A

Change in total revenue / Change in quanityt

9
Q

Profit

A

Total revenue - Total costs

10
Q

Supernormal profits

A

AR > AC

11
Q

Subnormal profit

A

AR < AC

12
Q

Revenue maximisation

A

MR=0

13
Q

AC=AR shows…

A

Sales maximisation
Economic break even (no loss or gain)
Entry limit price
Normal profit

14
Q

Allocative efficiency

A

MC=P

15
Q

Productive efficiency

A

Minimum point in AC

16
Q

X efficiency

A

Any point along AC curve

17
Q

Minimum efficient scale

A

On AC before it stops falling

18
Q

Average utility

A

Total utility / Quantity

19
Q

Marginal utility

A

Change in total utility / Change in quantity

20
Q

Utility maximisation

A

Marginal utility = 0

21
Q

Social costs

A

PC + EC

22
Q

Social benefits

A

PB + EB

23
Q

Profit max in a labour market

A

MPP of labour = MC of labour

24
Q

Price elasticity of demand

A

Percentage change in quantity demanded / Percentage change in price

25
Q

Price elasticity of supply

A

Percentage change in quantity supplied / percentage change in price

26
Q

Cross elasticity of demand

A

Percentage change in quantity demanded for good A / Percentage change in price of good B

27
Q

Income elasticity of demand

A

Percentage change in quantity demanded / percentage change in income

28
Q

Real GDP

A

Nominal GDP / Price index x 100

29
Q

Nominal GDP

A

Quantity of goods and services sold and produced X the current prices

30
Q

GDP deflator

A

Real x nominal gdp. X 100

31
Q

GNI

A

GDP + net factor invome

32
Q

A

C I G (X-M)

33
Q

Multiplie

A

1 / 1-MPC
1/1-MPW

34
Q

Unemployment rate

A

Total unemployed / Size of the labour force

35
Q

Index number

A

Current value / Raw value of the base year. X 100

36
Q

Percentage change

A

Difference / Original x 100

37
Q

Gina coefficient

A

Area A / Area A + B

38
Q