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22 Cards in this Set
- Front
- Back
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Marginal Cost
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MC=change in TC/change in Q
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Average Total Cost
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ATC=TC/Q
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Average Fixed Cost
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AFC=FC/Q
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Average Variable Cost
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AVC=VC/Q
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Total Economic Profit
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profit(Q)= TR(Q)-TC(Q)
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Accounting Profit
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profit=TR-TC
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Linear Function of Demand
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D=-P+(1/10)I+(1/2)PS-(1/4)PC+5
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Increasing Demand Shifters
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I PS T FP FI NB
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PED
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%change in Demand/%change in Price OR
(-1/slope)x(P/Qd) |
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PED elastic/inelastic
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elastic- increase in price=decrease in revenue
inelastic- increase in price=increase in revenue |
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Marginal Cost
|
MC=change in TC/change in Q
|
|
|
Average Total Cost
|
ATC=TC/Q
|
|
|
Average Fixed Cost
|
AFC=FC/Q
|
|
|
Average Variable Cost
|
AVC=VC/Q
|
|
|
Total Economic Profit
|
profit(Q)= TR(Q)-TC(Q)
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|
|
Accounting Profit
|
profit=TR-TC
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|
|
Linear Function of Demand
|
D=-P+(1/10)I+(1/2)PS-(1/4)PC+5
|
|
|
Increasing Demand Shifters
|
I PS T FP FI NB
|
|
|
PED
|
change in Demand/change in Price OR
(-1/slope)x(P/Qd) |
|
|
PED elastic/inelastic
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elastic- increase in price=decrease in revenue
inelastic- increase in price=increase in revenue |
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IED
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%change in Demand/%change in Income
IED>0 normal IED<0 inferior |
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CPED
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%change in Demand/%change in another product's price
CPED>0 substitute CPED <0 complement |
