The Dynamics of Perfect Markets (Grade 12 NSC Matric Economics): Flashcards

Only variable factors change; fixed factors remain constant

All factors of production can be modified

$TC = FC + VC$

$MC = \frac{\Delta TC}{\Delta Q}$

$AC = AFC + AVC$ or $\frac{TC}{Q}$

$TR = P \times Q$

Expenses constant regardless of output (e.g., rent, insurance)

Expenses that change with production (e.g., wages, materials)

Always decreases as output increases

At their minimum points