Formula 

Gross Profit:
GNP = C + I + G + (X - M)

Net National Product (NNP)

NNP = GNP – Depreciation

GDP 
GDP = GNP - Net Foreign Income From Abroad

Personal Income:
 
PI = Nl + Transfer Payments - Corporate retained earnings, income taxes,
social security taxes

Disposable Personal Income:

Disposable personal income = Personal Income - Personal Taxes
 
DPI = PI - Personal Taxes

Disposable Income = Consumption + Saving

DI = C + S

1. Commerce
2. Formulas for Economics

Formulas for Economics

Formulas for Economics plays an important role in all the students educational period.
However, one of the significant responsibilities in economics is the assessment of options to
decide which valid contents are given purposes or intentions. In order to do this, it is usually
beneficial to ascertain reason and influence associations and to quantify variables. Economics
is a strong device that supports both of these tasks. It is difficult to perform economic
analysis without some rudimentary knowledge of fundamentals.
Also Check: Accounting Formulas for Commerce Students
Economics is an accurate language that is helpful in articulating causal associations between
associated variables. When decisions are taken about the distribution of resources, it is
beneficial to be able to articulate how a difference in one input will modify the result and
conclusively change the utility of individuals.
Important Economics Formulas

AverageTotalCost(ATC)=TotalCostQ

AverageVariableCost(AVC)=TotalVariableCostAverage

Fixed Cost (AFC) = ATC – AVC

TotalCost(TC)=(AVC+AFC)×Output

TotalVariableCost(TVC)=AVC×Output

Total Fixed Cost (TFC) = TC – TVC

MarginalCost(MC)=ChangeinTotalCostsChangeinOutput

MarginalProduct(MP)=ChangeinTotalProductChangeinVariableFactor

MarginalRevenue(MR)=ChangeinTotalRevenueChangeinQ

AverageProduct(AP)=TPVariableFactor

TotalRevenue(TR)=Price×Quantity

AverageRevenue(AR)=TROutput

TotalProduct(TP)=AP×VariableFactor

Economic Profit = TR – TC > 0

A Loss = TR – TC < 0

Break Even Point = AR = ATC

Profit Maximizing Condition = MR = MC

Explicit Costs = Payments to non-owners of the firm for the resources they supply