Chapter 11 Key Terms

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Across
  1. 3. This is how a firm reaches their customer
  2. 4. The return needed from a firm to stay in the market in the long run
  3. 6. Economies of scale that arise from the expansion of a firm
  4. 8. Where a firm decides to leave the market, as they are unable to cover their fixed costs
  5. 11. Costs that do not vary with the level of output
  6. 14. Eventually the firm will get diminishing marginal returns from the variable factor
  7. 16. Occur for a firm when an increase in scale of production, leads to higher long-run average costs
  8. 19. The sum of all costs that are incurred, in producing a level of output
  9. 20. Total cost divided by the quantity produced, this is sometimes referred to as unit cost
  10. 21. Refers to the income which is generated by a firm
  11. 22. The cost of producing an additional unit of output
  12. 24. The level of output at which long-run average cost stops falling as output increases
  13. 25. Firms buy in bulk as they will have the ability to negotiate good deals with suppliers
  14. 26. This is profit gained above normal profits- also known as abnormal or economic profit
Down
  1. 1. Economies of scale that arise from the expansion of the industry which the firm is operating in
  2. 2. The additional quantity of output produced, by an additional unit of labour output
  3. 5. Profit made by a business based on explicit costs incurred, but excluding opportunity cost
  4. 7. Costs that do vary with the level of output
  5. 9. This occurs for a firm when an increase in the scale of production, leads to production being a lower average cost in the long run
  6. 10. The period in which at least one factor of production is fixed in supply
  7. 12. This is the amount of money a firm has to spend
  8. 13. The additional revenue received by the firm if it sells an additional unit if output
  9. 15. An organisation which produces output (good/service).
  10. 17. The revenue received by a firm from it’s sales of a good or service
  11. 18. The revenue received by the firm per unit of output
  12. 23. Costs incurred by a firm that cannot be recovered if the firms stops trading
  13. 27. The period over which the firm is able to vary the inputs of all its factors of production