Formula Needed

Total Cost

Formula
TC=TFC+TVC

Marginal Cost

MC=TC/Q

Average Total Cost

AC=TC/Q

TC=total costs
Q=quantity

Marginal Value
Profit

=(P*Q)-ATC

Revenue

R=(P*Q)

Marginal Revenue

MC=TR/Q

(P*Q)=Price*Quan
tity=Total
Revenue
ATC=average
costs
Where P*Q is
price and quantity
TR=total revenue Important to
Q=Quantity
remember
that marginal
profit is
equivalent to
marginal
revenue
Where Q is price
and P is quantity,
and P/Q
references
price/quantity
ration at point
P and Q are the
change between
two given points
Quantity chances

Point elasticity of
demand

Q
P
P
Q

Elasticity

%P/%Q

Unit elastic

Elasticity=1

Terms
TFC= total fixed
costs
TVC= cumulative
totaled fixed costs
TC=total costs
Q= change in
quantity

When to Use
All the
fucking time
When you
need to find
the average
costs of shit,
when you do
any type of
good shit,
use this.
Useful when
determining
where a firm
will produce
and where
equilibrium
price will b

Formula Needed

Formula

Elastic

Elasticity>1

Inelastic

Elasticity<1

Monopoly Markup

(p-mc)/p=1/(n)

Monopolist marginal
revenue

MR=P*(1-1/n)

Monopoly Marginal
Revenue

MC=A/B-2Q/B

Terms
in response to
price with same
ratio increase of 1
in price= increase
of 1 in quantity
When price goes
up by 1, quantity
goes up by a
greater amount
than 1
When price goes
up by 1, quantity
changes by an
amount lesser
than 1
P is price, mc is
marginal cost,
and N is elasticity
Where MR is
marginal revenue,
P is price and N
is elasticity of
demand
Marginal
Revenue= MC
AB are
coefficients like
quadratic formula

When to Use