Short Run
Long Run
Marginal Product
Variable factor of production
Why may a firm experience diminishing returns in the short run?
Why may a firm experience increasing returns in the short run and returns to scale in the long run
Increasing returns to scale
Diminishing returns
Increasing marginal returns
What is the difference between Increasing marginal returns and Increasing returns to scale?
Why may a firm decide to choose to employ more capital rather than labour?
Fixed costs
Variable costs
Total costs
Marginal Costs
Why does the MC has the shape it does?
Why does the ATC shape the way it does?
Minimum Efficient Scale
What is the possible structure of an industry with a MES of production that occurs at low levels of output?
Economies of Scale
Diseconomies of Scale
Internal Economies of scale
Technical Economies of scale
Internal Economies of scale
Specialisation of Labour
Internal Economies of scale
Financial Economies of scale
External Economies of scale
Infrastructure
Diseconomies of scale
Coordination
Diseconomies of scale
Cooperation
Invention
Innovation
How can the adoption of new technologies affect the industry to make it more competitive?
Total Revenue
Marginal Revenue
Average Revenue
Why does the MR curve slope more
steeply than the AR curve?
Sales Revenue Maximisation
MR=0
Average Cost Pricing
Marginal Cost Pricing
MC=AR
Why is profit maximising where MC=MR?
Divorce of ownership and control
Satisficing
Hostile Bid
