Latex Code for Microeconomics, Economics Formula and Equation
rockingdingo 20230514 #Economics #MicroeconomicsLatex Code for Microeconomics, Economics Formula and Equation
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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, CrossPrice 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, ProfitMaximizing 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
 CrossPrice 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
 ProfitMaximizing Output Level
 Slope of the Total Product Curve
 Socially Optimal Level of Output
 Total Costs
1. Microeconomics

Simple Interest
EconomicsEquation
Latex Code
I=Prt \\ A=P(1+rt)
Explanation
Latex code for the Simple Interest. I will briefly introduce the notations in this formulation.
 : Interest Earned
 : Principal/Present Value
 : Annual Rate
 : Time (years)
 : Future Value/Maturity Value
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Compound Interest
EconomicsEquation
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.
 : Future Value/Maturity Value
 : Principal/Present Value
 : Annual Rate (decimal)
 : Number of Compounding Periods per Year
 : Time (years)
 : Loan/investment is compounded continuously
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Effective Rate
EconomicsEquation
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.
 : Effective Rate
 : Compute the effective rate if your loan/investment is compounded m times per year.
 : Compute the effective rate if your loan/investment is compounded continuously.
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Future Value of Ordinary Annuities
EconomicsEquation
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.
 : Future Value/Total amount accrued
 : Payment/Deposit made in each period
 : Rate per period
 : Total number of times compounded
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Annuities Due
EconomicsEquation
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
 : Future Value/Total amount accrued
 : Payment/Deposit made in each period
 : Rate per period
 : Total number of times compounded
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Present Value of Ordinary Annuities
EconomicsEquation
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.
 : Present Value
 : Payment made in each period
 : Rate per period, usually i=r/m
 : Total number of times compounded, n=mt
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Allocative Efficiency Condition
Economics,MicroeconomicsEquation
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.
 : Marginal Social Benefit
 : Marginal Social Cost
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Average Fixed Cost
Economics,MicroeconomicsEquation
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.
 : Total Fixed Cost
 : Quantity of Output
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Average Product
Economics,MicroeconomicsEquation
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.
 : Average Product
 : Total Product
 : Quantity of Input
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Average Profit
Economics,MicroeconomicsEquation
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.
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Average Revenue
Economics,MicroeconomicsEquation
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.
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Average Total Cost
Economics,MicroeconomicsEquation
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.
 : Average Total Cost
 : Total Cost
 : Quantity of Output
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Average Variable Cost
Economics,MicroeconomicsEquation
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.
 : Average Variable Cost
 : Total Variable Cost
 : Quantity of Output
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CrossPrice Elasticity of Demand
Economics,MicroeconomicsEquation
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 CrossPrice Elasticity of Demand. I will briefly introduce the notations in this formulation.
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Distributive Efficiency Condition
Economics,MicroeconomicsEquation
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.
 : Marginal Utility of F
 : Product of F
 : Marginal Utility of C
 : Product of C
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Elasticity of Supply
Economics,MicroeconomicsEquation
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.
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Factor of Production Hiring Rule
Economics,MicroeconomicsEquation
Latex Code
\text{MRP} = \text{MFC}
Explanation
Latex code for Factor of Production Hiring Rule. I will briefly introduce the notations in this formulation.
 : Marginal revenue product
 : Marginal factor cost (MFC)
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Marginal Revenue Product
Economics,MicroeconomicsEquation
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 twostep 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.
 : Marginal Product(MP)
 : Marginal Revenue(MR)
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Gini Coefficient
Economics,MicroeconomicsEquation
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.
 : Area between Line of Perfect Equality and Lorenz Curve.
 : Area of Triangle between Xaxis (Cumulative of Families) and Yaxis(Cumulative of Income).
 : The ratio of ith group's income/total income
 : The ratio of cumulative ith group's income(increasing order)/total income
 : The ratio of ith group's population(P)/total population(P)
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Marginal Cost
Economics,MicroeconomicsEquation
Latex Code
\text{MC} = \frac{\Delta \text{TC}}{\Delta \text{Q}} = \frac{\Delta \text{TVC}}{\Delta \text{Q}}
Explanation
Latex code for Marginal Cost.
 : Total Cost(TC)
 : Change in Total Cost(TC)
 : Quantity
 : Change in Quantity
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Marginal Product of Labor
Economics,MicroeconomicsEquation
Latex Code
\text{MPL} = \frac{\Delta \text{TP}}{\Delta \text{L}}
Explanation
Latex code for Marginal Product of Labor.
 : Marginal Product of Labor
 : Change in Total Product(TP)
 : Change in Labor(L)
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Marginal Revenue
Economics,MicroeconomicsEquation
Latex Code
\text{MR} = \frac{\Delta \text{TR}}{\Delta \text{Q}}
Explanation
Latex code for Marginal Revenue.
 : Marginal Revenue
 : Change in Total Revenue(TR)
 : Change in Quantity(Q)
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Marginal Factor Cost MFC
Economics,MicroeconomicsEquation
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:
 : Marginal Factor Cost
 : Change in total cost
 : Change in the quantity of the factor
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Marginal Revenue Product of Labor MRPL
Economics,MicroeconomicsEquation
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.
 : Marginal Revenue Product of Labor
 : Marginal Product of Labor
 : Price
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Optimal Combination of Resources Condition
Economics,MicroeconomicsEquation
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.
 : Marginal Revenue Product of Labor
 : Marginal Product of Labor
 : Price
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Optimal Consumption Rule
Economics,MicroeconomicsEquation
Latex Code
\frac{MU_{x}}{P_{x}} = \frac{MU_{Y}}{P_{Y}}
Explanation
Latex code for Optimal Consumption Rule.
 : Marginal utility (MU)
 : Price
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Price Elasticity of Demand
Economics,MicroeconomicsEquation
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
 : Percentage change in quantity demanded
 : Percentage change in Price
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Price for a Competitive Firm
Economics,MicroeconomicsEquation
Latex Code
P = MR
Explanation
Latex code for Price for a Competitive Firm.
 : Marginal revenue (MR)
 : Price
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Production Efficiency Condition
Economics,MicroeconomicsEquation
Latex Code
\frac{w}{r} = \frac{MP_{L}}{MP_{K}}
Explanation
Latex code for Price for a Competitive Firm.
 : Marginal Product Label
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Profit
Economics,MicroeconomicsEquation
Latex Code
\text{Profit} = \text{TR} â?? \text{TC}
Explanation
Latex code for Price for a Competitive Firm.
 : Total Revenue
 : Total Cost
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ProfitMaximizing Output Level
Economics,MicroeconomicsEquation
Latex Code
MR = MC
Explanation
Latex code for ProfitMaximizing Output Level.
 : Marginal Revenue
 : Marginal Cost
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Slope of the Total Product Curve
Economics,MicroeconomicsEquation
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.
 : Change in Total Product
 : Total Product Curve
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Socially Optimal Level of Output
Economics,MicroeconomicsEquation
Latex Code
Explanation
Latex code for Socially Optimal Level of Output.
 : Marginal Social Benefit
 : Marginal Social Cost
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Total Costs
Economics,MicroeconomicsEquation
Latex Code
\text{TC} = \text{TFC} + \text{TVC}
Explanation
Latex code for Socially Optimal Level of Output.
 : Total Costs (TC)
 : Total Fixed Costs (TFC)
 : Total Variable Costs (TVC)
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