What are the seven short run cost calculations? How are they related?
The seven short run cost calculations are: TC, TFC, TVC, MC, ATC, AFC, and AVC. Note that TC = TFC + TVC; ATC = AFC + AVC. MC = (Change in TC) / (Change in Q) = (Change in TVC) / (Change in Q); ATC = TC/Q; AVC = TVC/Q; AFC = TFC/Q.
Economics
You might also like to view...
The price elasticity of the supply of teenage labor services is approximately 1.36. Suppose the minimum wage rises from $7.25 per hour to $8.75. Using the midpoint formula, what is the approximate change in the quantity of teenage labor supplied?
A) 7.3 percent B) 14.4 percent C) 25.5 percent D) There is insufficient information to answer the question.
Economics
Use the above table and assume a fixed cost of $200. At an output of 2, ATC is
A. $150.
B. $200.
C. $250.
D. $300.
Economics