SUPPLY PROBLEM NOTES

by Hanh N. 1:07 PM 1 comments
fixed cost - cost that doesn't change no matter how much is produced.
EX. rent, mortgage, insurance

variable cost - cost that fluctuate or change. does depend on how much is produced.
EX. electricity, gas, etc.

marginal cost - cost of producing of one more unit of a good.

marginal revenue - additional income from selling one more unit of a good. 

EQUATIONS:
total cost (TC): TFC + TVC
marginal cost (MC): NEW TC - OLD TC
average fixed cost (AFC): TFC
                                            Q
average variable cost (AVC): TVC
                                                 Q
average total cost (ATC): AFC + AVC  or TC
                                                                  Q
total revenue: P x Q


1 comment:

  1. UnknownJanuary 21, 2015 at 9:36 PM

    i love how you represented all the equations, Hanh! makes everything understandable and easy to do. Although there are a few things you could clean up, like the Q placement and stuff. overall though, nice blog.

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