Economics formulas ;;
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ATR or AR = TR / Qs
ATC= TC / Qs
Profit= TR – TC
Average profit= AR – AC
TR = P x Qs
TC = VC + FC
Marginal cost or Mc ( mac chicken) : Tc^2 – Tc^1 / Q^2 – Q^1 { total cost – quan-ty}
AC = TC – output or { AFC + AVC} -> but why bother w more steps?
AVC = Variable / number of units produced
Price = ( TC / Total output) + % mark – up
Market share: (Total sales of business / total sales of industry) x 100
-> poorly done mistake
Ver$cal backward . (back you are going back, think of it as your mom she wants to
cook pasta , first she needs supplies, she asks u to go to the supermarket and get raw
pasta and pasta sauce, YOU ARE GOING TO THE SUPERMARKET TO get raw supplies)
In short you are going backward to a supplier who supplies the needed supply to
produce a product! Easy??
If u understood my example, you’ll understand ver$cal forward
Ver$cal forward . ( later stage of produc$on) { your have your product fully processed
and ready, your obvious next step is to sell your pasta , where? . at a store or according
to the example I gave u – a restaurant – now u can generate sales in ur shop
( I also used to get this wrong , I understand it and so should u )