Economics formulas

Concept Short name Formula/Rule

Average fixed cost AFC AFC=TFC/Q
Average Revenue AR AR=TR/Q
Average Total Cost ATC ATC=TC/Q
ATC=AFC+AVC
Average variable cost AVC AVC=TVC/Q
Consumer Surplus CS CS=V-C
Cross-price elasticity of demand D D= %Change in cuantity demand of good
1 (Q1)/%Change in price of good 2 (P2)
Income elasticity of demand I I= %Change in cuantity demand/%Change in income
Marginal cost MC MC= Change in TC /Change in Q
MC= Change in TVC/Change in Q
Marginal revenue MR MR= Change in TR/Change in Q
Price elasticity of demand D D= %Change in Q/%Change in P
Price elasticity of supply S %Change in Q supplied/%Change in P
Producer surplus PS PS=R-C Amount received by sellers - Cost of sellers
Profit P P=TR-TC Profit equals TR -TC
Slope S S= Slope equals change in Y / change in X
Total Cost TC TC=TFC+TVC Equals Total fixed cost + Total variable cost

Cost Analysis I

A. Historical cost
%Change in income

st of sellers

ariable cost