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econ topic 3 business behaviour & labour markets > 3.3 revenues, costs & profits > Flashcards

3.3 revenues, costs & profits Flashcards

1
Q

SR assumes

A

at least one fixed factor of production

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2
Q

LR assumes

A

all factors of production are variable

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3
Q

two types of costs

A

explicit implicit

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4
Q

implicit costs

A

opportunity cost

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5
Q

explicit costs

A

real life moneys !!

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6
Q

examples of fixed costs

A 
rent 
salaries
interest on loands
adverts
business rates (contracts)
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7
Q

examples of variable costs

A

wages
utility bills
raw materials
transport

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8
Q

total cost

A

TFC + TVC

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9
Q

avg fixed cost

A

TFC/Q

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10
Q

SR cost curves look at … and will be outweighed by …

A

impact of productivity

diminishing marginal productivity

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11
Q

LR cost curves look at … and eventually are outweighed by …

A

factors of production prices

diseconomies of scale

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12
Q

MES refers to

A

minimum efficient scale

lowest level of output required to exploit economies of scale

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13
Q

internal economies of scale

really fun mums try making pies

A 
risk management
financial
management
tech 
marketing
purchasing
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14
Q

external economies of scale

A

better transport infrastructure

supplies manufactuer

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15
Q

diseconomies of scale is caused by the 3Cs and a M

A

control
communication
coordination
motivation

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16
Q

total revenue

A

P X Q

17
Q

avg revenue

A

TR / Q = P

18
Q

marginal revenue

A

△TR / △Q

19
Q

assumptions of perfect competition

A 
many buyers & sellers (infinite)
homogenous goods
price taker
no barriers to entry
perfect informationq
20
Q

assumptions of imperfect competition

A 
few buyers & sellers
price makers
differentiated goods
high barriers to entry/exit
imperfect information
21
Q

types of economies of scale

A

purchasing
technical
managerial
finanical

22
Q

diseconomies of scale 2 types

A

communication

coordination

23
Q

MES is

A

what is the scale of production when the LRAC is at its lowest

24
Q

internal economies of scale

A

increase in scale of production

25
Q

external economies of scale

A

increase in scales of production industry wide

26
Q

what does it mean if the MES is at a low point

A

large number of firms in the market

econ topic 3 business behaviour & labour markets (4 decks)

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