Cost rev, growth of firms, objectives, efficiency

Question 1

SR

Answer 1

The period of time when there is at least 1 fixed fop

Question 2

TPP

Answer 2

Total physical product

Question 3

TC

Answer 3

=TVC+TFC

Question 4

AC

Answer 4

=TC/Q

=AVC+ATC

Question 5

LR

Answer 5

All fop are variable

Question 6

I returns to scale

Answer 6

A percentage i in inputs leads to larger percentage i in output

Question 7

Financial Eos

Answer 7

Credit worthy; Favorable rate of borrowing

Question 8

Technical Eos

Answer 8

Combine specialist machinery
Specialization of workers
Indivisibilities 
Container principle
By-products

Question 9

Managerial Eos

Answer 9

Employ specialists (the same accountant

Question 10

Marketing Eos

Answer 10

Spread ad costs

Question 11

Risk-bearing

Answer 11

Diversify

Spread risk: when one industry faces difficulties another can cross sub

Question 12

Purchasing Eos

Answer 12

Bulk-buy at lower price if it has monopsony power

Question 13

Internal diseos

Answer 13

Managerial
Alienated workers
Interdependent

Question 14

External Eos

Answer 14

Expansion of industry or firms locate together in a particular area

Question 15

Eos

Answer 15

Ad of producing on a large scale that lead to falling LRAC

Question 16

External diseos

Answer 16

Shortage of raw material or skilled labour

Question 17

Organic growth

Answer 17

Self-financed

Question 18

Horizontal integration

Answer 18

Merger of 2 firms in the same industry and the same stage of production

Question 19

Vertical integration

Answer 19

Mergers of 2 firms in the same industry but at diff stages of production.
Forward: closer to retail end of the chain of production
Backward: closer to the raw material source

Question 20

Conglomerate

Answer 20

Merger of unrelated industries

Question 21

Merger

Answer 21

Joining of 2 separate firms

Question 22

Demerger

Answer 22

Selling of one part of business to another company

Reduction of monopoly pwr and market share

Question 23

Satisficing

Answer 23

Managers aim to make a satisfactory profit

Question 24

Productive efficiency

Answer 24

MC=AC good are produced at min Cost

Question 25

Allocative efficiency

Answer 25

MC=MU/AR

Pareto optimality: it is impossible to make 1 person better off without making someone else worse off

Question 26

FC

Answer 26

Doesn’t vary with output

Incurred even if output=0

Question 27

Why is AR downward in imperfect competition?

Answer 27

To sell 1 more unit have to lower p

Question 28

Diminishing returns

Answer 28

As more inputs are added there will be less than proportionate increase in returns

Question 29

Dynamic efficiency

Answer 29

Over long term new tech and productive techniques increase productive potential

Question 30

X-inefficiency

Answer 30

When firms are faced w higher AC than it could be

Maybe bc of monopoly

Question 31

Cost-plus pricing

Answer 31

Calculate AC and add a Mark-up

Question 32

What happens to MC if mortgage is decreased?

Answer 32

Nothing bc it’s fixed cost. MC is only related to VC

Question 33

Niche mkt

Answer 33

High YED low PED

Monopoly at specfic times

Question 34

Lack of synergy

Answer 34

One part of the firm has no impact on the more efficient and profitable running of the other part
managers divide time bet 2 businesses

Question 35

Private sector

Public sector

Answer 35

编吧

Question 36

Not-for-profit organization

Answer 36

Use profit or surplus to support their aims

Charities