It can be computed as the difference of marginal revenue and marginal costs.

It further indicates how well the individuals and businesses determine the allocation of resources to derive maximum value addition.

The formulas on economics can be elaborated basis the macroeconomic levels and microeconomic levels.

The as per the income approach, it is determined as the sum of labor, interest, rent and the remaining profits.

It is normally determined as the ratio of the count of the unemployed labor force to the count in the employed labor force.

It is normally defined as the inverse of the reserve ratio maintained by the bank.

The real GDP is instrumental in the computation and assessment of economic output along with the adjustment for deflation or inflation.

The nominal GDP assesses economic output without the effect of the inflation and hence Real GDP is considered to be a better measurement tool as compared with the Nominal GDP.

This metric helps in comparison of prices for products and services along with the changes in the levels of inflation.

The basket for products and services is to be updated on a daily basis followed by the determination of cost of the basket and determination of index.

This is further expressed in percentage terms.

The inflation rate gives the signal of how the prices of services and products have shaped up from year to year.

As per Fischers Equation, it is determined as the ratio of nominal interest rates and inflation rates.

It is expressed as the product of the overall price and the quantity in demand.

If the prices are high, it would result in inelastic demand on prices wherein higher prices result in more revenues.

Demand is elastic when the prices are high and results in low volumes.

Marginal revenue is the additional revenue earned for the additional quantity sold.

The average revenue is expressed as the ratio of total revenue with respect to the overall quantity sold.

The variable costs are termed as the costs that have a tendency to vary with the level of goods sold by the organization.

The fixed costs are defined as the type of costs that endure being the same throughout the levels of quantity sold by the business.

Graphically, marginal costs are plotted as a U-shaped curve wherein the costs appreciate initially and as the production rises, the costs deteriorate.

In such a relationship, determine the total costs and total quantity to arrive at the average total costs.

In such a relationship, determine the total fixed costs and total quantity to arrive at the average total fixed costs.

In such a relationship, determine the total variable costs and total quantity to arrive at the average total variable costs.

Firstly, it can be computed as the difference between total revenues and total costs.

All Microeconomics Formulas