It is extremely important to know the various cost curve formulas and to know the various relationships between the curves. You will need to have these memorized before the final exam so try and go over them for five minutes everyday or every couple of days. It will really help you on the final exam. Here is a quick review of the formulas:
MC=Change in TC/Change in Q (Remember that MC is also just the change in VC as well)
MR=Change in TR/Change in Q
TR=P * Q
- Whenever you are doing something having to deal with marginal, whether it’s MC or MR, just remember it always has to do with the CHANGE in something over the CHANGE in something else.
- ATC can also be found by doing (FC+VC)/Q or AFC+AVC