Equation Database

EQUATION LIST

economics

• Allocative Efficiency Condition

  #Economics #Microeconomics

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

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• Average Fixed Cost

  #Economics #Microeconomics

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

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• Average Product

  #Economics #Microeconomics

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

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• Average Revenue

  #Economics #Microeconomics

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

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• Average Total Cost

  #Economics #Microeconomics

  $$\text{Average Total Cost(ATC)} = \frac{\text{Total Cost (TC)}}{\text{Quantity of Output (Q)}}$$

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• Average Variable Cost

  #Economics #Microeconomics

  $$\text{Average Variable Cost(AVC)} = \frac{\text{Total Variable Cost (TVC)}}{\text{Quantity of Output (Q)}}$$

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• Cross-Price Elasticity of Demand

  #Economics #Microeconomics

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

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• Elasticity of Supply

  #Economics #Microeconomics

  $$\text{Elasticity of Supply} = \frac{\text{Percentage Change in Quantity Supplied}}{\text{Percentage Change in Price}}$$

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• Factor of Production Hiring Rule

  #Economics #Microeconomics

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

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• Marginal Cost

  #Economics #Microeconomics

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

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• Marginal Factor Cost MFC

  #Economics #Microeconomics

  $$\text{MFC} = \frac{\Delta \text{TC}}{\Delta \text{f}}$$

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• Marginal Product of Labor

  #Economics #Microeconomics

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

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• Marginal Revenue

  #Economics #Microeconomics

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

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• Marginal Revenue Product

  #Economics #Microeconomics

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

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• Marginal Revenue Product of Labor MRPL

  #Economics #Microeconomics

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

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• Optimal Combination of Resources Condition

  #Economics #Microeconomics

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

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• Price Elasticity of Demand

  #Economics #Microeconomics

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

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• Autonomous Spending Multiplier

  #Economics #MacroEconomics

  $$\text{Multiplier} = \frac{1}{1-MPC} = \frac{1}{MPS}$$

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• Balanced Budget Multiplier

  #Economics #MacroEconomics

  $$\text{Balanced Budget Multiplier} = \frac{1}{1-MPC} + \frac{-MPC}{1-MPC} = 1$$

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• Banks Reserve Ratio

  #Economics #MacroEconomics

  $$\text{Reserve Ratio} = \frac{\text{Bank Reserves}}{\text{Total Deposits}}$$

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• Distributive Efficiency Condition

  #Economics #Microeconomics

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

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• Equality of Leakages and Injections

  #Economics #MacroEconomics

  $$\text{S} + \text{T} + \text{M} = \text{I} + \text{G} + \text{X}$$

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• Equation of Exchange

  #Economics #MacroEconomics

  $$\text{MV} = \text{PQ}$$

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• Gini Coefficient

  #Economics #Microeconomics

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

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• Gross Domestic Product Deflator

  #Economics #MacroEconomics

  $$\text{GDP Deflator}= \frac{\text{Current Year Quantities} \times \text{Current Year Prices}}{\text{Current Year Quantities} \times \text{Base Year Prices}} \times 100$$

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• Investment

  #Economics #MacroEconomics

  $$I=I_{P}+I_{U}$$

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• Optimal Consumption Rule

  #Economics #Microeconomics

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

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• Price for a Competitive Firm

  #Economics #Microeconomics

  $$P = MR$$

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• Production Efficiency Condition

  #Economics #Microeconomics

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

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• Profit

  #Economics #Microeconomics

  $$\text{Profit} = \text{TR} – \text{TC}$$

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• Profit-Maximizing Output Level

  #Economics #Microeconomics

  $$MR = MC$$

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• Slope of the Total Product Curve

  #Economics #Microeconomics

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

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• Socially Optimal Level of Output

  #Economics #Microeconomics

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

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• Total Costs

  #Economics #Microeconomics

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

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