Principles of Economics - Cheat Sheet | ECON 2005, Study notes of Microeconomics

Download Principles of Economics - Cheat Sheet | ECON 2005 and more Study notes Microeconomics in PDF only on Docsity! Formula Sheet 3 (Chps. 8, 9 and 13) Chapter 8: 1. TC = TFC + TVC 2. AFC = TFC/q ⇒ TFC = AFC x q 3. MC of 5th unit of output = TC of 5 units of output – TC of 4 units of output = TVC of 5 units of output – TVC of 4 units of output 4. ATC = AFC + AVC 5. ATC = TC/q ⇒ TC = ATC x q 6. AVC = TVC/q ⇒ TVC = AVC x q 7. TR = P x q 8. MR from 5th unit of output = TR from 5 units of output – TR from 4 units of output Chapter 9: 1. Economic Profit = TR – TC = TR – TFC –TVC 2. Operating Profit = TR – TVC Chapter 13: The formulas required to do calculations in this chapter are quite similar to the ones used in chapters 8 and 9. Note: This might not be an exhaustive list by itself. So in addition to this you should know any formula that might have been used in the problem set and/or discussed in class. Econ2005 (Spring2008) Formula Sheet 3 1