Revision

1. Costs that cannot be recovered if the firm leaves the industry
3. What kind of intensity in the production methods would cause high set up costs and high barriers to entry in that industry
6. Firms with limited capital can enter which kind of a market.
7. What kinds of returns to the variable factor lead to falling AVC?
11. A doctor and an operating theatre are what kinds of factors of production?
12. The amount a firm receives for the sale of its output.
13. The amount by which total revenue exceeds total cost
14. A firm that is the sole seller of a product with no close substitutes
15. The average cost curve that is falling as the output increases

2. The kind of profits required to keep a firm in the industry in the long run
4. Can increase brand loyalty and act as a barrier to entry
5. The value of elasticity of demand curve that individual firm faces under perfect competition
8. The slope of the demand curve under monopoly
9. The diagram shows the demand for and supply of labour in an industry. The original equilibrium is X. A trade union then negotiates a wage rate of W.
10. The kind of profits that can be earned by perfectly competitive and monopolistic firms in the short run