AP Microeconomics Formula List

TFC + TVC

TC

TFC/Q

AFC

TFC + TVC

TC

TFC/Q

AFC

TVC/Q

AVC

AFC + AVC

ATC

TC/Q

ATC

Change in TC/ Change in Q

MC

TR/Q

AR or P

Sum of MP

TP

P x Q

TR

Change in TR/ Change in Q

MR

Change in TP/ Change in L

MP

TP/L

AP

AR < AVC

Shutdown point

% change in QD/ % change in P

Elasticity of demand

P = ATC

Fair returns

P = MC

Socially optimal

P > MC

Underallocation of resources

P < MC

Overallocation of resources

MR = MC

Profit maximization

MRP = MRC

Hiring Rule

MP x P

MRP (in a perfectly competitive factor market)

TR - TC

profit

P > ATC

economic profit

P < ATC

economic loss

Change in TR / Change in Input

MRP

Change in TC / Change in Input

MRC

P = Min. ATC

productive efficiency

Change in price

movement along the demand curve

Ed

Elasticity of Demand

MR < 0

inelastic

MR > 0

elastic

MR = 0

unit elastic

Ed < 1

inelastic

Ed > 1

elastic

Ed = 1

unit elastic