# MGEA02H3 Study Guide - Midterm Guide: Average Variable Cost, Marginal Product, Fixed Cost

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Published on 18 May 2016

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Chapter 6

1. % change in quantity demanded

= Change in quantity demanded / Initial quantity demanded × 100

2. % change in price

= Change in price / Initial price × 100

3. Price elasticity of demand

= % change in quantity demanded / % change in price

4. Midpoint Method

% change in X = Change in X Average value of X × 100

where the average value of X is defined as

Average value of X = Starting value of X + Final value of X

5. Price elasticity of demand =

6. Total revenue

= Price × Quantity sold

7. Cross-price elasticity of demand between goods A and B

= % change in quantity of A demanded / % change in price of B

8. Income elasticity of demand

= % change in quantity demanded / % change in income

9. Price elasticity of supply

= % change in quantity supplied / % change in price

10. Es / Ed = BS / SS

Chapter 11

1. Marginal product of labour

= Change in quantity of output produced by one additional unit of labour

= Change in quantity of output / Change in quantity of labour

MPL = Dq / DL

2. Average product of labour

= Total quantity of output / Total quantity of labour employed

APL = q / L

3. Total cost

= Fixed cost + Variable cost

TC = FC + VC

4. Marginal cost

= Change in total cost generated by one additional unit of output

= Change in total cost / Change in quantity of output

MC = DTC / Dq

5. ATC = Total cost / Quantity of output = TC / q

6. AFC = FC q

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## Document Summary

Chapter 6: % change in quantity demanded. = change in quantity demanded / initial quantity demanded 100: % change in price. = change in price / initial price 100: price elasticity of demand. = % change in quantity demanded / % change in price: midpoint method. % change in x = change in x average value of x 100 where the average value of x is defined as. Average value of x = starting value of x + final value of x: price elasticity of demand , total revenue. = price quantity sold: cross-price elasticity of demand between goods a and b. = % change in quantity of a demanded / % change in price of b. = % change in quantity demanded / % change in income: price elasticity of supply. = % change in quantity supplied / % change in price: es / ed = bs / ss.