Costs:

• Costs:
-Total Revenue: Price * Quantity

-Fixed Cost: A cost that doesnt change no matter how much of a good is produced. Ex. Salary, mortgage, insurance.

-Variable Cost: A cost that rises and falls depending upon how much is produced Ex. Electricity, cell phone bill.

-Marginal Cost: The cost of producing one more unit of a good

-Revenue: Bring in - must always have $ sign; cost - goes out

-Marginal Revenue: The aditional income from selling another unit of a good.\

• Equations (reversable):
TFC + TVC = TC
AFC + AVC = ATC
TFC / Q = AFC
TVC / Q = AVC
TC / Q = ATC
ΔTC / ΔQ = MC 

Comments

  1. Arnulfo Lance S.May 1, 2018 at 8:19 AM

    Notes felt like its a definitions and very small and limited. It could've used more into the notes.

    ReplyDelete

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