Econ Formulas

TR

P • Q

TC

TFC + TVC

Profit

TR - TC

Accounting Profit

TR - Explicit Costs

Economic Profit

TR (Explicit Costs - Implicit Costs)

MR

🔺TR/ 🔺Q

MC

🔺TC/ 🔺Q

ATC

TC/Q or AFC + AVC

AVC

TVC/ Q

AFC

TFC/ Q

MP

🔺TP/ 🔺L

AP

TP/ L

Profit Maximizing Rule

MR >= MC

Total Profits (long)

Q(P - ATC)