Dr. Barry Haworth

University of Louisville

Department of Economics

Economics 201

### Some Helpful Equations for Midterm #2

Here are some equations to guide your study of the cost and product curves, as well as perfect competition sections before Midterm #2.

- AP
_{L} = Q/L

- MP
_{L} = DQ/DL

- TC = TFC + TVC

- TFC = Sunk Costs + Recoverable FC

- AC = TC/Q

- AFC = TFC/Q

- AVC = TVC/Q

- Profits = (P - AC)Q

- Profits = (P x Q) - TC

Where:
Q = output

L = labor

AP_{L} = average product of labor

MP_{L} = marginal product of labor

TC = total cost

TFC = total fixed costs

TVC = total variable costs

AC = average (total) cost

AFC = average fixed cost

AVC = average variable cost