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Unformatted text preview: no matter units produced 1) VC – Subway (Meat, Cheese, Labor) 2) FC – Subway ( Rent, Property Taxes) Total Cost (TC) = (VC + FC) = TC (MC) Marginal Cost – Additional cost to make 1 more unit. (OR) The Change in Total Cost Divided change in output (AVC) Average Variable Cost = Variable cost DIVIDED Output (AFC) Average Fixed Cost = Fixed cost DIVIDED Output “Spreading out your Overhead” (ATC) Average Total Cost = Total Cost DIVIDED Output “The Cost of Producing the typical unit” (MP) Marginal Product = Additional Output from one more input-MP = Change Output Divided Change in Input-MP Labor = Change in Out Divided by Change in Workers (AP) Average Product = Output Divided by Input -AP Labor = Output Divided by Workers...
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This note was uploaded on 10/28/2008 for the course ECON 101 taught by Professor Nick during the Spring '08 term at East Carolina University .
- Spring '08