3.1- Business growth and Objectives Part B

1. ... of ... occur for a firm when an increase in a firms scale of production leads to production at lower long-run average cost (9, 5)
6. ... efficient scale is the level of output at which long-run average cost stops falling as output increases (7)
7. ... efficiency occurs when firms have chosen appropriate combinations of factors of production and produce the maximum output possible from those inputs, thus producing at minimum long-run average cost (10)
9. ... economies of scale are economies of scale that rise from the expansion of a firm (8)
10. ... is a situation arising when a firm is not operating at minimum cost, perhaps because of organisational slack (1, 12)

2. ... profit ( AKA abnormal or economic profit) is the terms referring to profits that exceed normal profits (11)
3. ... is profit that covers the opportunity cost of capital and is just sufficient to keep the firm in the market (6, 6)
4. ... of ... occur for a firm when an increase in the scale of production leads to higher long-run average costs (12, 5)
5. Economies of ... are economies arising when average cost falls as a firm increases output across a range of different products (5)
8. ... economies of scale are economies of scale that arise from the expansion of the industry in which a firm is operating (8)

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