3.3 Revenues, costs and profits

Question 1

a) Formulae to calculate and understand the relationship
between:
o total revenue
o average revenue
o marginal revenue

Question 2

b) Price elasticity of demand and its relationship to revenue
concepts (calculation required)

Question 3

a) Formulae to calculate and understand the relationship
between:
o total cost
o total fixed cost
o total variable cost
o average (total) cost
o average fixed cost
o average variable cost
o marginal cost

Question 4

b) Derivation of short-run cost curves from the assumption
of diminishing marginal productivity

Question 5

c) Relationship between short-run and long-run average
cost curves

Question 6

a) Types of economies and diseconomies of scale (internal/external)

Question 7

b) Minimum efficient scale

Question 8

c) Distinction between internal and external economies of
scale

Question 9

a) Condition for profit maximisation

Question 10

b) Normal profit, supernormal profit and losses

Question 11

c) Short-run and long-run shut-down points: diagrammatic
analysis

Question 12

revenue - perfect vs imperfect competition

Question 13

revenue EVALUATION

Question 14

explain returns to scale

Question 15

costs EVALUATION

Question 16

impacts of internal vs external EOS

Question 17

types of internal & external DEOS

Question 18

EOS small firm vs large firm

Question 19

EOS evaluation

Question 20

accounting profit vs economic profit

Question 21

shut down point (SR&LR)

Question 22

role of profit in the economy