Ch 2 · Theory of Production and Cost

5 concept points · 5 formulas · 4 exam-critical points.

🧮 Formula sheet

1. Average Product (AP) = TP / L
2. Marginal Product (MP) = ΔTP / ΔL
3. Total Cost (TC) = TFC + TVC
4. Average Cost (AC) = TC / Q
5. Marginal Cost (MC) = ΔTC / ΔQ