3.3 Revenues, costs and profits Flashcards
a) Formulae to calculate and understand the relationship
between:
o total revenue
o average revenue
o marginal revenue
b) Price elasticity of demand and its relationship to revenue
concepts (calculation required)
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
b) Derivation of short-run cost curves from the assumption
of diminishing marginal productivity
c) Relationship between short-run and long-run average
cost curves
a) Types of economies and diseconomies of scale (internal/external)
b) Minimum efficient scale
c) Distinction between internal and external economies of
scale
a) Condition for profit maximisation
b) Normal profit, supernormal profit and losses
c) Short-run and long-run shut-down points: diagrammatic
analysis
revenue - perfect vs imperfect competition
revenue EVALUATION
explain returns to scale
costs EVALUATION