OCR Transport Definitions 2011 Match up the definition to the term to test yourself! 4.0 / 5 based on 5 ratings ? EconomicsA2/A-levelOCR Created by: BlytheCreated 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 cross-subsidisation 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 collusion 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 hypothecation 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 franchise 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 oligopoly 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 interdependency where the actions of one firm provoke counter action by another 17 of 21 harmonisation 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
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