1. Essential AP Microeconomics Formulas

2. AVERAGE PRODUCT (AP)

3. TOTAL PRODUCT (TP OR Q)/LABOR (L)

4. MARGINAL PRODUCT (MP)

5. ΔTP/ΔL

6. PROFIT

7. TOTAL REVENUE (TR) – TOTAL COST (TC)

8. TOTAL COST

9. TOTAL FIXED COSTS (TFC) + TOTAL VARIABLE COSTS (TVC)

10. AVERAGE COST (AC)

11. TOTAL COSTS (TC) / QUANTITY (Q)

12. AVERAGE FIXED COSTS (AFC)

13. TOTAL FIXED COSTS (TFC) / QUANTITY (Q)

14. AVERAGE VARIABLE COSTS (AVC)

15. TOTAL VARIABLE COST (TVC) / QUANTITY (Q)

16. AVERAGE REVENUE (AR)

17. TOTAL REVENUE (TR) / QUANTITY (Q)

18. IN PERFECT COMPETITION…

19. DEMAND (D) = AVERAGE REVENUE (AR) = PRICE (P)

20. MARGINAL REVENUE (MR)

21. ΔTR / ΔQ (OR ΔTP)

22. MARGINAL COST (MC)

23. ΔTC / ΔQ

24. PROFIT MAXIMIZATION POINT

25. WHERE MR = MC

26. “BREAKEVEN” POINT

27. WHERE P = ATC

28. SHUTDOWN POINT

29. WHERE P = AVC