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14 Cards in this Set
- Front
- Back
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Accounting Profits
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Revenue - Explicit Cost
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Economic Profit
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Revenue - (Explicit + Implicit Costs)
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Maximum Level of Output
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Total Revenue - Total Costs
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Average Product (AP)
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Total Product (TP) / Variable Units (Q)
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Marginal Product (MP)
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Change in Total Product / Change in Variable Units (Q)
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Total Cost (TC)
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Total Fixed Cost (TFC) + Total Variable Cost (TVC)
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Average Total Cost (ATC)
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Total Cost / Q
or AVC + AFC |
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Average Fixed Cost
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Total Fixed Cost / Q
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Average Variable Cost
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Total Variable Cost / Q
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Marginal Cost
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Change in Total Cost / Change in Q
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Condition for Cost Minimization
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Marginal Product of Capital / Price of Capital = Marginal Product of Labor / Price of Labor
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Total Revenue (TR)
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Price (P) x Units (Q)
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Average Revenue (AR)
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Total Revenue / Q
or (P x Q) / Q or P |
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Marginal Revenue (MR)
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Change in Total Revenue / Change in Q
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