# formulas for econ

 Profit is total revenue - total cost economic profit is exlicit and implicit revenue - explicit and implicit cost total cost is total cost = fixed cost + variable cost Average fixed costs (AFC) equals fixed cost divided by quantity produced AFC = FC/Q Average Variable costs AVC equals variable cost divided by quanity produced AVC = VC/Q Average total costs (ATC) equals total cost divided by quantity produced ATC = TC/Q or ATC = AFC + AVC Marginal cost (MC) is the increase in total cost when output increases by one unit, MC = ^TC/^Q the relationship between marginal cost and average cost if MC > ATC, then ATC is rising the relationship between marginal cost and average cost if MC > AVC then AVC is rising the relationship between marginal cost and average cost If MC < ATC then ATC is falling the relationship between marginal cost and average cost if MC < AVC then then AVC is falling the relationship between marginal cost and average cost if MC = AVC and MC = ATC then then AVC and ATC are at their minimum points Authorndumas2 ID73922 Card Setformulas for econ Descriptionfor chapter 12 Updated2011-03-20T00:50:27Z Show Answers