Chapter 13: Firms & Decisions - Theory of the Firm Part 1

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Across
  1. 3. This problem occurs when too many firms in the same industry are concentrated in the same locality, leading to cost disadvantages instead.
  2. 5. inputs whose quantities can be quite easily changed
  3. 7. ___ EOS results in a movement along the LRAS curve
  4. 8. revenue received from an additional unit of output sold
  5. 12. total payment received by seller from the sale of a product
  6. 15. cost savings that accrue to individual firms in an industry because of the expansion of the industry
  7. 18. change in total cost when an additional output is produced.
  8. 19. time period where at least one factor is fixed
  9. 20. Example of technical EOS
  10. 21. cost savings enjoyed in the actual production process of the good as the firm expands its output
Down
  1. 1. type of cost incurred in production in the long-run
  2. 2. reductions in long-run average costs enjoyed by a firm as a result of expanding its output
  3. 4. price line and hence the demand curve of the firm.
  4. 6. ability of a firm to purchase its inputs in bulk at negotiated discounted prices
  5. 9. cost disadvantages accruing to a firm as a result of expanding its output
  6. 10. ability of a firm to spread advertising cost over a larger output
  7. 11. inputs whose quantities cannot be easily changed
  8. 13. In the short-run, firms have these costs
  9. 14. Firm expands through _____ and/or external growth
  10. 16. time period which is long enough to allow the firm to change quantities of all factors of production
  11. 17. ___ EOS results in a shift of the LRAS curve