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15 Cards in this Set
- Front
- Back
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Show a total cost diagram
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How to work out MC, AR, MR
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AR = Total revenue / output MR = Change in total revenue / change in Q |
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Returns to scale on a diagram
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Diagram for profit maximisation
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Diagram for revenue maximisation
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Supernormal profit perfect completion
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Normal profit perfect competition
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Subnormal profit perfect competition
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Supernormal profit imperfect competition/monopoly
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Normal Profit imperfect competition/monopoly
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Subnormal profit imperfect competition/monopoly
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Roles of profit in the economy |
Creation of a business Worker/shareholder incentives Influences allocation of resources Efficiency allocator reward for innovation source for business finance signalling function |
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Business Objectives
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Revenue Ma Market Share Max Growth Survival Customer Service Quality Non Profit/Public L-R Profit Max Political Influence Social Responsibility Cut costs |
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AO4 for Profit Maximising and other objectives`
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-One objective leads to another |
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