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Economics Mathematics, Economics Theory March 20, 2012 1 Comment
March 2012
One of the important tasks in economics is the evaluation of alternatives to determine which best
satisfies given objectives or goals. In order to do this it is often desirable determine cause and effect
relationships and to quantify variables. Mathematics is a powerful tool that aids both these tasks. It is
impossible to do economic analysis without some elementary understanding of basic CATEGORIES
Economics Mathematics
Economics Theory
Introduction to economics
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Mathematics is a very precise language that is useful in expressing causal relationships between
related variables. Since microeconomics is the study of the relationships between resources and the Entries RSS
production of goods that are used to satisfy wants, mathematics is indispensable. When decisions are
Comments RSS
made about the allocation of resources, it is desirable to be able to express how a change in one
input will alter the output and ultimately change the utility of individuals. WordPress.com
Here is a list of some of the basic microeconomics formulas pertaining to revenues and costs of a firm.
Remember when you’re using these formulas there are a variety of assumptions, namely, that the the
firm is profit-maximizing
Average Total Cost (ATC) = Total Cost / Q (Output is
quantity produced or ‘Q’)
Average Variable Cost (AVC) = Total Variable Cost / Follow
QAverage
Fixed Cost (AFC) = ATC – AVC
Follow “Simple
Total Cost (TC) = (AVC + AFC) X Output (Which is Q)
Economics”
Get every new post delivered
Total Variable Cost (TVC) = AVC X Output
to your Inbox.
Total Fixed Cost (TFC) = TC – TVC
Marginal Cost (MC) = Change in Total Costs / Change in Output
Marginal Product (MP) = Change in Total Product / Change in Variable Factor
Powered by WordPress.com
Marginal Revenue (MR) = Change in Total Revenue / Change in Q
Average Product (AP) = TP / Variable Factor
Total Revenue (TR) = Price X Quantity
http://simpoeconomics.wordpress.com/2012/03/20/introduction-to-basic-economics-formulas/[1/10/2014 11:16:48 AM]
Simple Economics
Learn Wealth Creation
About
Introduction to basic Economics Formulas
ARCHIVES
Economics Mathematics, Economics Theory March 20, 2012 1 Comment
March 2012
One of the important tasks in economics is the evaluation of alternatives to determine which best
satisfies given objectives or goals. In order to do this it is often desirable determine cause and effect
relationships and to quantify variables. Mathematics is a powerful tool that aids both these tasks. It is
impossible to do economic analysis without some elementary understanding of basic CATEGORIES
Economics Mathematics
Economics Theory
Introduction to economics
Uncategorized
META
Register
math tools.
Log in
Mathematics is a very precise language that is useful in expressing causal relationships between
related variables. Since microeconomics is the study of the relationships between resources and the Entries RSS
production of goods that are used to satisfy wants, mathematics is indispensable. When decisions are
Comments RSS
made about the allocation of resources, it is desirable to be able to express how a change in one
input will alter the output and ultimately change the utility of individuals. WordPress.com
Here is a list of some of the basic microeconomics formulas pertaining to revenues and costs of a firm.
Remember when you’re using these formulas there are a variety of assumptions, namely, that the the
firm is profit-maximizing
Average Total Cost (ATC) = Total Cost / Q (Output is
quantity produced or ‘Q’)
Average Variable Cost (AVC) = Total Variable Cost / Follow
QAverage
Fixed Cost (AFC) = ATC – AVC
Follow “Simple
Total Cost (TC) = (AVC + AFC) X Output (Which is Q)
Economics”
Get every new post delivered
Total Variable Cost (TVC) = AVC X Output
to your Inbox.
Total Fixed Cost (TFC) = TC – TVC
Marginal Cost (MC) = Change in Total Costs / Change in Output
Marginal Product (MP) = Change in Total Product / Change in Variable Factor
Powered by WordPress.com
Marginal Revenue (MR) = Change in Total Revenue / Change in Q
Average Product (AP) = TP / Variable Factor
Total Revenue (TR) = Price X Quantity
http://simpoeconomics.wordpress.com/2012/03/20/introduction-to-basic-economics-formulas/[1/10/2014 11:16:48 AM]
