paper 3 formulas Flashcards
(42 cards)
total cost
total fixed cost + total variable cost
or
average cost x quantity
total fixed costs
total costs - total variable costs
or
average fixed costs x quantity
total variable cost
total cost - total fixed costd
or
average variable costs x quantity
average cost
total cost / quantity
marginal cost
change in total cost / change in quantity
profit
total revenue - total costs
average product
total product / quantity of labor
marginal product
change in total product / change in quantity of labor
total revenue
price x quantity
average revenue
total revenue / quantity = price
marginal revenue
change in total revenue / change in quantity
supernormal profit
AR > AC
subnormal profit
AR < AC
profit max
MR = MC
revenue max
MR = 0
AC = AR
normal profit
sales max
breakeven
entry limit price (the price that prevents new firms from entering the market)
allocative efficiency
D = S
MSB = MSC
P = MC
productive efficiency
min point on AC
AC = MC
x efficiency
at any point on AC
dynamic efficiency
LR supernormal profit
minimum efficient scale
at the lowest quantity level
when AC stops decreasing
shutdown condition
AR = AVC
AR < AVC
average utility
total utility / quantity
marginal utility
change in total utility / change in quantity
