Latex Code for Microeconomics, Economics Formula and Equation

rockingdingo 2023-05-14 #Economics #Microeconomics

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In this blog, we will summarize the latex code of most popular formulas and equations for Microeconomics, Economics. We will cover important topics, including Allocative Efficiency Condition, Annuities Due, Average Fixed Cost, Average Product, Average Revenue, Average Total Cost, Average Variable Cost ,Compound Interest, Cross-Price Elasticity of Demand, Effective Rate, Elasticity of Supply, Factor of Production Hiring Rule, Future Value of Ordinary Annuities Marginal Cost, Marginal Revenue Product, Present Value of Ordinary Annuities, Simple Interest ,Distributive Efficiency Condition, Gini Coefficient, Marginal Factor Cost MFC, Marginal Product of Labor, Marginal Revenue, Marginal Revenue Product of Labor MRPL, Optimal Combination of Resources Condition, Optimal Consumption Rule, Price Elasticity of Demand, Price for a Competitive Firm, Production Efficiency Condition, Profit, Profit-Maximizing Output Level, Slope of the Total Product Curve, Socially Optimal Level of Output, Total Costs, etc.

1. Microeconomics

Simple Interest

Effective Rate

Future Value of Ordinary Annuities

Annuities Due

Present Value of Ordinary Annuities

Allocative Efficiency Condition

Average Fixed Cost

Average Product

Average Profit

Average Revenue

Average Total Cost

Average Variable Cost

Cross-Price Elasticity of Demand

Distributive Efficiency Condition

Elasticity of Supply

Factor of Production Hiring Rule

Marginal Revenue Product

Gini Coefficient

Marginal Cost

Marginal Product of Labor

Marginal Revenue

Marginal Factor Cost MFC

Marginal Revenue Product of Labor MRPL

Optimal Combination of Resources Condition

Optimal Consumption Rule

Price Elasticity of Demand

Price for a Competitive Firm

Production Efficiency Condition

Profit

Profit-Maximizing Output Level

Slope of the Total Product Curve

Socially Optimal Level of Output

Total Costs

1. Microeconomics

Simple Interest
Economics
Equation

$I=Prt \\ A=P(1+rt)$

Latex Code
```
            I=Prt \\
            A=P(1+rt)
        
```
Explanation

Latex code for the Simple Interest. I will briefly introduce the notations in this formulation.
- $I$ : Interest Earned
- $P$ : Principal/Present Value
- $r$ : Annual Rate
- $t$ : Time (years)
- $A$ : Future Value/Maturity Value
Related Documents
- Investopedia Simple Interest
Related Videos
Compound Interest
Economics
Equation

$A = P(1+\frac{r}{m})^{mt}$

Latex Code
```
            A = P(1+\frac{r}{m})^{mt} \\
            A = Pe^{rt}
        
```
Explanation

Latex code for the Compound Interest. I will briefly introduce the notations in this formulation.
- $A$ : Future Value/Maturity Value
- $P$ : Principal/Present Value
- $r$ : Annual Rate (decimal)
- $m$ : Number of Compounding Periods per Year
- $t$ : Time (years)
- $A = Pe^{rt}$ : Loan/investment is compounded continuously
Related Documents
- Compound Interest Calculator
- Investopedia Compound Interest
Related Videos
Effective Rate
Economics
Equation

$r_{e} = (1 + \frac{r}{m})^{m} - 1 \\ r_{e} = e^{r} - 1$

Latex Code
```
            r_{e} = (1 + \frac{r}{m})^{m} - 1 \\
            r_{e} = e^{r} - 1
        
```
Explanation

Latex code for the Effective Rate. I will briefly introduce the notations in this formulation.
- $r_{e}$ : Effective Rate
- $r_{e} = (1 + \frac{r}{m})^{m} - 1$ : Compute the effective rate if your loan/investment is compounded m times per year.
- $r_{e} = e^{r} - 1$ : Compute the effective rate if your loan/investment is compounded continuously.
Related Documents
- Investopedia Effective Rate
Related Videos
Future Value of Ordinary Annuities
Economics
Equation

$S = R \times \frac{(1+i)^n - 1}{i} \\ R = S \times \frac{i}{(1+i)^n - 1}$

Latex Code
```
            S = R \times \frac{(1+i)^n - 1}{i} \\
            R = S \times \frac{i}{(1+i)^n - 1}
        
```
Explanation

Latex code for the Future Value of Ordinary Annuities. The payment/deposit is at the END of the period. I will briefly introduce the notations in this formulation.
- $S$ : Future Value/Total amount accrued
- $R$ : Payment/Deposit made in each period
- $i$ : Rate per period
- $n$ : Total number of times compounded
Related Documents
- Ordinary Annuity
Related Videos
Annuities Due
Economics
Equation

$S = R \times \frac{(1+i)^(n+1) - 1}{i} - R$

Latex Code
```
            S = R \times \frac{(1+i)^(n+1) - 1}{i} - R
        
```
Explanation

Latex code for the Future Value of Annuities Due. I will briefly introduce the notations in this formulation. The payment/deposit is at the BEGINNING of the period
- $S$ : Future Value/Total amount accrued
- $R$ : Payment/Deposit made in each period
- $i$ : Rate per period
- $n$ : Total number of times compounded
Related Documents
- Ordinary Annuity
Related Videos
Present Value of Ordinary Annuities
Economics
Equation

$P = R \frac{1 - (1+r)^{-n}}{i} \\ R = P \frac{i}{1 - (1+r)^{-n}}$

Latex Code
```
            P = R \frac{1 - (1+r)^{-n}}{i} \\
            R = P \frac{i}{1 - (1+r)^{-n}}
        
```
Explanation

Latex code for the Present Value of Ordinary Annuities. I will briefly introduce the notations in this formulation. The payment is made at the END of the period.
- $P$ : Present Value
- $R$ : Payment made in each period
- $i$ : Rate per period, usually i=r/m
- $n$ : Total number of times compounded, n=mt
Related Documents
- Ordinary Annuity
Related Videos
Allocative Efficiency Condition
Economics,Microeconomics
Equation

$P = MC \\ \text{Marginal Social Benefit (MSB)} = \text{Marginal Social Cost (MSC)}$

Latex Code
```
            P = MC \\
            \text{Marginal Social Benefit (MSB)} = \text{Marginal Social Cost (MSC)}
        
```
Explanation

Latex code for the Allocative Efficiency Condition. I will briefly introduce the notations in this formulation. Allocative efficiency occurs when consumer demand is completely met by supply. In other words, businesses are providing the exact supply that consumers want.
- $MSB$ : Marginal Social Benefit
- $MSC$ : Marginal Social Cost
Related Documents
- Allocative Efficiency: Definition, Example Productive Efficiency
Related Videos
Average Fixed Cost
Economics,Microeconomics
Equation

$AFC = \frac{Total Fixed Cost (TFC)}{Quantity of Output (Q)}$

Latex Code
```
            AFC = \frac{Total Fixed Cost (TFC)}{Quantity of Output (Q)}
        
```
Explanation

Latex code for the Allocative Average Fixed Cost. I will briefly introduce the notations in this formulation.
- $TFC$ : Total Fixed Cost
- $Q$ : Quantity of Output
Related Documents
Related Videos
Average Product
Economics,Microeconomics
Equation

$\text{AP} = \frac{\text{Total Product}}{\text{Quantity of Input}}$

Latex Code
```
            \text{AP} = \frac{\text{Total Product}}{\text{Quantity of Input}}
        
```
Explanation

Latex code for the Average Product. I will briefly introduce the notations in this formulation.
- $AP$ : Average Product
- $TP$ : Total Product
- $QI$ : Quantity of Input
Related Documents
Related Videos
Average Profit
Economics,Microeconomics
Equation

$\text{Average Profit} = \frac{\text{Total Profit}}{\text{Quantity}}$

Latex Code
```
            \text{Average Profit} = \frac{\text{Total Profit}}{\text{Quantity}}
        
```
Explanation

Latex code for the Average Profit. I will briefly introduce the notations in this formulation.
Related Documents
Related Videos
Average Revenue
Economics,Microeconomics
Equation

$\text{Average Revenue} = \frac{\text{Total Revenue}}{\text{Quantity}}$

Latex Code
```
            \text{Average Revenue} = \frac{\text{Total Revenue}}{\text{Quantity}}
        
```
Explanation

Latex code for the Average Revenue. I will briefly introduce the notations in this formulation.
Related Documents
Related Videos
Average Total Cost
Economics,Microeconomics
Equation

$\text{Average Revenue} = \frac{\text{Total Revenue}}{\text{Quantity}}$

Latex Code
```
            \text{Average Total Cost(ATC)} = \frac{\text{Total Cost (TC)}}{\text{Quantity of Output (Q)}}
        
```
Explanation

Latex code for the Average Revenue. I will briefly introduce the notations in this formulation.
- $ATC$ : Average Total Cost
- $TC$ : Total Cost
- $Q$ : Quantity of Output
Related Documents
Related Videos
Average Variable Cost
Economics,Microeconomics
Equation

$\text{Average Revenue} = \frac{\text{Total Revenue}}{\text{Quantity}}$

Latex Code
```
            \text{Average Variable Cost(AVC)} = \frac{\text{Total Variable Cost (TVC)}}{\text{Quantity of Output (Q)}}
        
```
Explanation

Latex code for the Average Variable Cost. I will briefly introduce the notations in this formulation.
- $AVC$ : Average Variable Cost
- $TC$ : Total Variable Cost
- $Q$ : Quantity of Output
Related Documents
Related Videos
Cross-Price Elasticity of Demand
Economics,Microeconomics
Equation

$\text{Elasticity of Demand} = \frac{\text{Percentage Change in Quantity Demanded of Good X}}{\text{Percentage Change in Price of Good Y}}$

Latex Code
```
            \text{Elasticity of Demand} = \frac{\text{Percentage Change in Quantity Demanded of Good X}}{\text{Percentage Change in Price of Good Y}}
        
```
Explanation

Latex code for Cross-Price Elasticity of Demand. I will briefly introduce the notations in this formulation.
Related Documents
Related Videos
Distributive Efficiency Condition
Economics,Microeconomics
Equation

$\frac{MU_{F}}{P_{F}} = \frac{MU_{C}}{P_{C}}$

Latex Code
```
            \frac{MU_{F}}{P_{F}} = \frac{MU_{C}}{P_{C}}
        
```
Explanation

Latex code for Distributive Efficiency Condition. I will briefly introduce the notations in this formulation. Distributive efficiency is concerned with an equitable distribution of resources because of the law of diminishing marginal returns. The Law of diminishing marginal returns states that as consumption of a good increase we tend to get diminishing marginal utility.
- $MU_{F}$ : Marginal Utility of F
- $P_{F}$ : Product of F
- $MU_{C}$ : Marginal Utility of C
- $P_{C}$ : Product of C
Related Documents
- Distributive Efficiency Definition
Related Videos
Elasticity of Supply
Economics,Microeconomics
Equation

$\text{Elasticity of Demand} = \frac{\text{Percentage Change in Quantity Demanded of Good X}}{\text{Percentage Change in Price of Good Y}}$

Latex Code
```
            \text{Elasticity of Supply} = \frac{\text{Percentage Change in Quantity Supplied}}{\text{Percentage Change in Price}}
        
```
Explanation

Latex code for Elasticity of Supply. I will briefly introduce the notations in this formulation.
Related Documents
Related Videos
Factor of Production Hiring Rule
Economics,Microeconomics
Equation

$\text{MRP} = \text{MFC}$

Latex Code
```
            \text{MRP} = \text{MFC}
        
```
Explanation

Latex code for Factor of Production Hiring Rule. I will briefly introduce the notations in this formulation.
- $MRP$ : Marginal revenue product
- $MFC$ : Marginal factor cost (MFC)
Related Documents
- The Demand for Labor
Related Videos
Marginal Revenue Product
Economics,Microeconomics
Equation

$\text{MRP} = \text{MP} \times \text{MR}$

Latex Code
```
            \text{MRP} = \text{MP} \times \text{MR}
        
```
Explanation

Latex code for Marginal Revenue Product. The amount that an additional unit of a factor adds to a firm's total revenue during a period is called the marginal revenue product (MRP) of the factor. An additional unit of a factor of production adds to a firmâ??s revenue in a two-step process: first, it increases the firm's output. Second, the increased output increases the firmâ??s total revenue. We find marginal revenue product by multiplying the marginal product (MP) of the factor by the marginal revenue (MR). I will briefly introduce the notations in this formulation.
- $MP$ : Marginal Product(MP)
- $MR$ : Marginal Revenue(MR)
Related Documents
- The Demand for Labor
Related Videos
Gini Coefficient
Economics,Microeconomics
Equation

$G = \frac{S_{A}}{S_{B}} \\ G = 1 - \sum^{n}_{i=1} P_{i} \times (2 Q_{i} - W_{i}) \\ Q_{i} = \sum^{i}_{k = 1} W_{k}$

Latex Code
```
            G = \frac{S_{A}}{S_{B}} \\
            G = 1 - \sum^{n}_{i=1} P_{i} \times (2 Q_{i} - W_{i}) \\
            Q_{i} = \sum^{i}_{k = 1} W_{k} 
        
```
Explanation

Latex code for Gini Coefficient. The Gini coefficient (Gini index or Gini ratio) is a statistical measure of economic inequality in a population. The coefficient measures the dispersion of income or distribution of wealth among the members of a population.
- $S_{A}$ : Area between Line of Perfect Equality and Lorenz Curve.
- $S_{B}$ : Area of Triangle between X-axis (Cumulative of Families) and Y-axis(Cumulative of Income).
- $W_{i}$ : The ratio of i-th group's income/total income
- $Q_{i}$ : The ratio of cumulative i-th group's income(increasing order)/total income
- $P_{i}$ : The ratio of i-th group's population(P)/total population(P)
Related Documents
- Corporate Finance Institute Gini-coefficient
Related Videos
Marginal Cost
Economics,Microeconomics
Equation

$\text{MC} = \frac{\Delta \text{TC}}{\Delta \text{Q}} = \frac{\Delta \text{TVC}}{\Delta \text{Q}}$

Latex Code
```
            \text{MC} = \frac{\Delta \text{TC}}{\Delta \text{Q}} = \frac{\Delta \text{TVC}}{\Delta \text{Q}}
        
```
Explanation

Latex code for Marginal Cost.
- $TC$ : Total Cost(TC)
- $\Delta \text{TC}$ : Change in Total Cost(TC)
- $Q$ : Quantity
- $\Delta \text{Q}$ : Change in Quantity
Related Documents
- Investopedia Marginal Cost
Related Videos
Marginal Product of Labor
Economics,Microeconomics
Equation

$\text{MPL} = \frac{\Delta \text{TC}}{\Delta \text{L}}$

Latex Code
```
            \text{MPL} = \frac{\Delta \text{TP}}{\Delta \text{L}}
        
```
Explanation

Latex code for Marginal Product of Labor.
- $MPL$ : Marginal Product of Labor
- $\Delta \text{TP}$ : Change in Total Product(TP)
- $\Delta \text{L}$ : Change in Labor(L)
Related Documents
- How Is the Marginal Product of Labor Determined
Related Videos
Marginal Revenue
Economics,Microeconomics
Equation

$\text{MR} = \frac{\Delta \text{TR}}{\Delta \text{Q}}$

Latex Code
```
            \text{MR} = \frac{\Delta \text{TR}}{\Delta \text{Q}}
        
```
Explanation

Latex code for Marginal Revenue.
- $MR$ : Marginal Revenue
- $\Delta \text{TR}$ : Change in Total Revenue(TR)
- $\Delta \text{Q}$ : Change in Quantity(Q)
Related Documents
Related Videos
Marginal Factor Cost MFC
Economics,Microeconomics
Equation

$\text{MRP}_{L} = \text{MP}_{L} \times \text{P}$

Latex Code
```
            \text{MFC} = \frac{\Delta \text{TC}}{\Delta \text{f}}
        
```
Explanation

Latex code for Marginal Factor Cost MFC. Marginal factor cost (MFC) is the change in total cost (\Delta \text{TC}}) divided by the change in the quantity of the factor:
- $\text{MFC}$ : Marginal Factor Cost
- $\Delta \text{TC}}$ : Change in total cost
- $\Delta \text{f}$ : Change in the quantity of the factor
Related Documents
- How Is the Marginal Product of Labor Determined
Related Videos
Marginal Revenue Product of Labor MRPL
Economics,Microeconomics
Equation

$\text{MRP}_{L} = \text{MP}_{L} \times \text{P}$

Latex Code
```
            \text{MRP}_{L} = \text{MP}_{L} \times \text{P}
        
```
Explanation

Latex code for Marginal Revenue Product of Labor MRPL. The marginal revenue product of labor (MRPL) is the marginal product of labor (MPL) times the marginal revenue (which is the same as price under perfect competition) the firm obtains from additional units of output that result from hiring the additional unit of labor.
- $\text{MRP}_{L}$ : Marginal Revenue Product of Labor
- $\text{MP}_{L}$ : Marginal Product of Labor
- $P$ : Price
Related Documents
- How Is the Marginal Product of Labor Determined
Related Videos
Optimal Combination of Resources Condition
Economics,Microeconomics
Equation

$\text{MRP}_{L} = \text{MP}_{L} \times \text{P}$

Latex Code
```
            \text{MRP}_{L} = \text{MP}_{L} \times \text{P}
        
```
Explanation

Latex code for Marginal Revenue Product of Labor MRPL. The marginal revenue product of labor (MRPL) is the marginal product of labor (MPL) times the marginal revenue (which is the same as price under perfect competition) the firm obtains from additional units of output that result from hiring the additional unit of labor.
- $\text{MRP}_{L}$ : Marginal Revenue Product of Labor
- $\text{MP}_{L}$ : Marginal Product of Labor
- $P$ : Price
Related Documents
- How Is the Marginal Product of Labor Determined
Related Videos
Optimal Consumption Rule
Economics,Microeconomics
Equation

$\frac{MU_{x}}{P_{x}} = \frac{MU_{Y}}{P_{Y}}$

Latex Code
```
            \frac{MU_{x}}{P_{x}} = \frac{MU_{Y}}{P_{Y}}
        
```
Explanation

Latex code for Optimal Consumption Rule.
- $MU$ : Marginal utility (MU)
- $P$ : Price
Related Documents
- How Is the Marginal Product of Labor Determined
Related Videos
Price Elasticity of Demand
Economics,Microeconomics
Equation

$\text{Price Elasticity of Demand} = \frac{% \Delta Q_{d}}{% \Delta P} = \frac{\frac{\Delta Q_{d}}{Q}}{\frac{\Delta P}{P}}$

Latex Code
```
            \text{Price Elasticity of Demand} = \frac{% \Delta Q_{d}}{% \Delta P} = \frac{\frac{\Delta Q_{d}}{Q}}{\frac{\Delta P}{P}}
        
```
Explanation

Latex code for Price Elasticity of Demand. Price Elasticity of Demand= Percentage change in quantity demanded / Percentage change in Price
- $% \Delta Q_{d}$ : Percentage change in quantity demanded
- $% \Delta P$ : Percentage change in Price
Related Documents
- Investopedia Price Elasticity of Demand
Related Videos
Price for a Competitive Firm
Economics,Microeconomics
Equation

$P=MR$

Latex Code
```
            P = MR
        
```
Explanation

Latex code for Price for a Competitive Firm.
- $MR$ : Marginal revenue (MR)
- $P$ : Price
Related Documents
- Investopedia Price Elasticity of Demand
Related Videos
Production Efficiency Condition
Economics,Microeconomics
Equation

$\frac{w}{r} = \frac{MP_{L}}{MP_{K}}$

Latex Code
```
            \frac{w}{r} = \frac{MP_{L}}{MP_{K}}
        
```
Explanation

Latex code for Price for a Competitive Firm.
- $MP_{L}$ : Marginal Product Label
Related Documents
- Production Efficiency
Related Videos
Profit
Economics,Microeconomics
Equation

$\text{Profit} = \text{TR} â?? \text{TC}$

Latex Code
```
            \text{Profit} = \text{TR} â?? \text{TC}
        
```
Explanation

Latex code for Price for a Competitive Firm.
- $\text{TR}$ : Total Revenue
- $\text{TC}$ : Total Cost
Related Documents
- Profit
Related Videos
Profit-Maximizing Output Level
Economics,Microeconomics
Equation

$MR = MC$

Latex Code
```
            MR = MC
        
```
Explanation

Latex code for Profit-Maximizing Output Level.
- $\text{MR}$ : Marginal Revenue
- $\text{MC}$ : Marginal Cost
Related Documents
- Profit
Related Videos
Slope of the Total Product Curve
Economics,Microeconomics
Equation

$\text{Marginal Product} = \frac{\text{Rise}}{\text{Run}} = \frac{\text{Change in Total Product}}{\text{Change in the Number of Units of an Input}}$

Latex Code
```
            \text{Marginal Product} = \frac{\Delta P}{\Delta L} = \frac{\text{Rise}}{\text{Run}} = \frac{\text{Change in Total Product}}{\text{Change in the Number of Units of an Input}}
        
```
Explanation

Latex code for Slope of the Total Product Curve.
- $\Delta Q$ : Change in Total Product
- $\text{TPC}$ : Total Product Curve
Related Documents
- 8-1-production-choices-and-costs-the-short-run
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Socially Optimal Level of Output
Economics,Microeconomics
Equation

$\text{MSB} = \text{MSC}}}$

Latex Code
```
            \text{MSB} = \text{MSC}
        
```
Explanation

Latex code for Socially Optimal Level of Output.
- $\text{MSB}$ : Marginal Social Benefit
- $\text{MSC}$ : Marginal Social Cost
Related Documents
- 8-1-production-choices-and-costs-the-short-run
Related Videos
Total Costs
Economics,Microeconomics
Equation

$\text{TC} = \text{TFC} + \text{TVC}$

Latex Code
```
            \text{TC} = \text{TFC} + \text{TVC}
        
```
Explanation

Latex code for Socially Optimal Level of Output.
- $\text{TC}$ : Total Costs (TC)
- $\text{TFC}$ : Total Fixed Costs (TFC)
- $\text{TVC}$ : Total Variable Costs (TVC)
Related Documents
- Total Variable Costs
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