Theme 3

2. How much it costs to produce one extra unit of output. (2 words)
6. Growth from within the firm. (2 words)
7. MC rises as more of the factor is added (2 words)
8. Profit in excess of normal profit. (2 words)
10. Difference between what a consumer pays and what he/she would be prepared to pay. (2 words)
12. When MC=MR. (2 words)
13. Making enough profit to survive and satisfy shareholders. (1 word)
15. ........ of scale which results in lower average costs. (1 word)

1. When one firm becomes the owner of another firm. (1 word)
3. Total revenue per unit of output. (2 words)
4. When the agent makes decisions for the principal, but is inclined to act in their own interests. (3 words)
5. The cost independent of output. (2 words)
9. One of the benefits of a conglomerate merger. (1 word)
11. Type of merger which involves joining with a company in the same industry and same stage of production. (1 word)
14. When a large firm splits up into a number of smaller firms. (1 word)