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# Formulas The image shows a table of formulas related to cost and revenue in a business setting, likely for economics or business courses. ## Cost and Revenue Formulas | Category | Formula | Description | |---|---|---| | **Total Product (TP)** | $TP = AP * #WM$ | Total Product is calculated by m...

# Formulas The image shows a table of formulas related to cost and revenue in a business setting, likely for economics or business courses. ## Cost and Revenue Formulas | Category | Formula | Description | |---|---|---| | **Total Product (TP)** | $TP = AP * #WM$ | Total Product is calculated by multiplying Average Product (AP) by the number of workers (WM). | |**Average Product (AP)** | $AP = TP / #WM$ | Average Product is the total product divided by the number of workers. | | **Average Cost (AC)** | $AC = AVC + AFC = TC / q$ | Average cost is the sum of average variable cost (AVC) and average fixed cost (AFC), which is calculated by dividing total cost (TC) by the quantity (q). | |**Marginal Physical Product (MPP)** | *change TP / change WM* | Marginal physical product (MPP) is the change in total product divided by the change in the number of workers. | |**Marginal Cost (MC)** | $MC = change TC / change q$ | Marginal Cost is the change in total cost divided by the change in quantity. | | **Total Cost (TC)** | $TC= TVC + TFC = AC * q$ | Total Cost is the sum of total variable cost (TVC) and total fixed cost (TFC). It is also calculated as average cost (AC) multiplied by the quantity (q).| | **Total Fixed Cost (TFC)** | $TFC = TC - TVC$ | Total Fixed Cost is the difference between total cost (TC) and total variable cost (TVC). | | **Average Variable Cost (AVC)** | $AVC = TVC / q = AC - AFC$ | Average Variable Cost is total variable cost (TVC) divided by quantity (q), which is also the difference between average cost and average fixed cost. | | **Average Fixed Cost (AFC)** | $AFC = TFC / q = AC - AVC$ | Average Fixed Cost is total fixed cost (TFC) divided by quantity (q), which is also the difference between average cost and average variable cost.| | **Additional Quantity**|$Q_2-Q_1$| Represents the changes in quantity.| |**Marginal Revenue (MR)**| $change TR / change q$ | Change in total revenue divided by change in quantity. | | **Total Revenue (TR)** | $TR = P*q$ | Total Revenue is calculated by multiplying the price (P) by the quantity (q).| |**Additional Revenue** |$TR_2 - TR_1$ | The increase in revenue resulting from the produce or item being sold| **Other Important Notes:** * $q$ represents quantity. * $P$(Price) is used in the Total Revenue Formula. * The table also describes "result" as the difference between total revenue (TR) and total cost (TC), leading to a profit or a loss for the business.