Unit One: Chapters 3 and 4- Supply Formulas

SUPPLY FORMULAS

Notes from (1/14/16)

Here is where calculators come into Macroeconomics for the first time! There are 7 terms abbreviated in a chart like shown below! 

• Total Fixed Cost = TFC
• Total Variable Cost = TVC
• Total Cost = TC
• Average Fixed Cost = AFC
• Average Variable Cost = AVC
• Average Total Cost = ATC
• Marginal Cost = MC

There are formulas to calculate these variables! As we do these calculations more, we will get faster and faster! (Hopefully...)

- TFC + TVC = TC

- AFC + AVC = ATC

- TFC / Q = AFC

- TVC / Q = AVC

- TC / Q = ATC

- TFC = (AFC) (Q)

- TVC = (AVC) (Q)

- MC = New TC - Old TC

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