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.

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