In the s.... r... at least one factor of production is fixed
Short Run
1 of 18
In the l... r.. all four factors of production are variable
Long Run
2 of 18
When total income or revenue for a firm is greater than total costs
Profits
3 of 18
What the firm receives for the sale of its products
Total Revenue
4 of 18
Total Revenue/Number Sold
Average Revenue
5 of 18
The addition to total revenue from the production of one extra unit
Marginal Revenue
6 of 18
Total Revenue-Total Costs
Total Profit
7 of 18
The amount required to keep a factor employed in its present activity in the long run
Normal Profit
8 of 18
Where a firm chooses a level of output where marginal revenue equals marginal costs
Profit Maximisation
9 of 18
A return above normal profit - a surplus payment
Supernormal Profit
10 of 18
Profit below normal which should lead to the firms leaving the industry
Subnormal Profit
11 of 18
Where increasing amounts of a variable factor are added to a fixed factor and the amount added to a total product by each additional unit of the variable factor eventually decreases
The Law of Diminishing Returns
12 of 18
If you don't have a recognizable brand it will be harder to enter the market
Brand Loyalty
13 of 18
Bigger businesses benefit from low average costs, people choose not to enter the market as they know their costs won't be as low
Economies of Scale
14 of 18
Legal Protection to prevent copy write of products
Patents
15 of 18
Meeting a required standard for example
Regulations
16 of 18
Need to invest in high t......... in order to enter the market
Technology
17 of 18
The market share of the largest firms in the industry
Concentration Ratio
18 of 18
Other cards in this set
Card 2
Front
In the l... r.. all four factors of production are variable
Back
Long Run
Card 3
Front
When total income or revenue for a firm is greater than total costs
Back
Card 4
Front
What the firm receives for the sale of its products
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