OCR Transport Definitions 2011

Match up the definition to the term to test yourself!

  • Created by: Blythe
  • Created on: 23-01-11 15:24
Minimum efficient scale
the lowest level of output where LRAC is minimised
1 of 21
economies of scale
benefits gained through producing on a larger scale
2 of 21
a business practice where revenue from profitable activities is used to support loss-making ones
3 of 21
average cost
unit cost of production
4 of 21
derived demand
demand that depends upon the final output that is produced
5 of 21
profit maximisation
achieved where MC=MR
6 of 21
external economies of scale
falling LRAC that will benefit the whole economy
7 of 21
supernormal profit
profit that is more than normal profit
8 of 21
dynamic efficiency
unit costs are lowered over time
9 of 21
where firms tacitly or otherwise agree to not compete on prices, service provision and other mattes that might adversely affect mutual well-being.
10 of 21
a situation where revenue from a tax is directly allocated to some other purpose
11 of 21
price discrimination
where a monopolist charges different prices for the same product in different markets
12 of 21
the outcome of a competitive system to bid for the provision of services
13 of 21
concentration ratio
the proportion of the total market shared between the nth largest firms (usually 4 or 5)
14 of 21
a market dominated by a few large firms
15 of 21
road user charging
a flat-rate charge is made fo the use of a stretch of road or access into a designated charging zone
16 of 21
where the actions of one firm provoke counter action by another
17 of 21
establishing a common set of rules and regulations to be followed
18 of 21
excess capacity
a consequence of firms producing at above he minimum point on the AC curve
19 of 21
deadweight loss
loss to society where price exceeds MC
20 of 21
Marginal Cost
the change in total cost when one more unit of output is produced
21 of 21

Other cards in this set

Card 2


economies of scale


benefits gained through producing on a larger scale

Card 3




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Card 4


average cost


Preview of the front of card 4

Card 5


derived demand


Preview of the front of card 5
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Thankyou :) very helpful.



top class

what did u get for economics what grade?

any tips for writting essays

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