Across
- 3. minimum amount of revenue that the firm must receive to keep the business running, covers all implicit costs
- 7. agreement between firms to limit competition between them
- 8. sum of explicit and implicit costs, total opportunity costs of a firm for its used of resources (purchased/owned)
- 14. a single large firm can produce for the entire market at a lower average total cost that 2 or more smaller firms
- 18. practice of charging a different price for the same product to different consumers when the price difference is not justified
- 20. characteristics of a market organization that influence the behaviour of firms within an industry
- 21. decreases in the average cost of production over the long run as a firm increases all its inputs
- 22. as more and more units of a variable input are added to one or more fixed inputs, MP of the variable input at first increases, but there is a point when MP decreases
- 23. increase in the average costs of production as a firm increases its output
- 25. output increases at the same proportion as all inputs
- 30. prevents other firms from entering the industry
- 31. firms try to achieve satisfactory rather than optimal or best results
- 32. firms produce the particular combination of g/s that consumers mostly prefer
- 33. price where economic profit is 0, ATC=AR
- 34. decisions taken by one firm affect other firms in the industry
- 35. sacrificedincome arising from the use of selfowned resources
- 36. workers specialise in tasks that make use of their skills, increasing efficiency
Down
- 1. extra or additional cost of producing one more unit of output
- 2. ability of a firm to set prices
- 4. costs that arise from the use of fixed inputs
- 5. indication of the percentage of output produced by the largest firms in an industry
- 6. total revenue - total economic costs
- 9. costs that arise from the use of variable inputs
- 10. output increases more than its proportion to the increase in all inputs
- 11. payments made by a firm to outsiders to acquire resources for use in production
- 12. cooperation that is implicit or understood by the cooperating firms, without a formal agreement
- 13. firm objective to engage in socially beneficial activities
- 15. firms do not agree, to fix prices or collaborate
- 16. production takes place at the lowest cost
- 17. formal agreement between firms in an industry to take actions to limit compeition
- 19. time period when all the inputs can be changed
- 24. price = min. AVC in the short run
- 26. time period during which at least one input is fixed and cannot be changed by the firm
- 27. dominant firm in the industry sets a price and also initiates any price changes
- 28. producing at a higher than necessary ATC
- 29. patents, licences, copyrights, public franchises