Across
- 4. __________ return of scale: where the rate of change in factors is greater than the rate of change in output.
- 5. __________ costs: are the opportunity costs of the self-owned resources, such as the time of the entrepreneur.
- 7. __________ it is likely that the managers make enough profit to keep the owners of the firm happy.
- 9. __________ revenue: is the addition to total revenue gained from the sale of the next unit of output and it is calculated by dividing the change in total revenue by the change in output:
- 11. __________ efficient scale: of production is the lowest level of output where average cost is at it’s lowest.
- 13. __________ and social responsibility: a firm includes ‘public interest’ in its decision-making, adopting an ethical code that accepts responsibility for the impact of activities on different areas inside or outside the firm.
- 15. __________ revenue: is calculated by multiplying the price of the product it sells by the quantity sold.
- 17. __________ revenue: is revenue per unit of output and is calculated by dividing total revenue by quantity sold.
- 18. __________ is the income a firm receives from the sale of its goods in a given period of time.
- 21. __________ economies of scale: occur when firms are able to reduce the price paid for resources.
- 22. (negative economic profit): total revenue is less than total costs.
Down
- 1. __________ in the long run: consists of a series of short-run periods of production where workers are added to a fixed quantity of factors.
- 2. __________ costs: are the costs of the purchased resources, such as raw material.
- 3. __________ returns of scale: are experienced where the rate of change in factor is equal to the rate of change in output.
- 6. __________ profit: is the difference between total revenue and economic costs.
- 8. __________ returns of scale: are made possible because of the economies of scale enjoyed by firms that are expanding their output.
- 10. __________ maximisation: a firm may aim to achieve growth in the short run, to gain a large market share and dominate the market in the long run.
- 12. __________ price: price where a firm can make normal profit in the long run. So all costs are covered including opportunity costs (price=ATC). If price does not cover ATC in the long run, the firm will shut down permanently.
- 14. __________ economies of scale: is the cost saving enjoyed by firms who are able to buy resources in very large quantities.
- 16. __________ maximising level of output: if a firm wishes to maximise its profits: it should produce at the level of output where MC cuts MR from below.
- 17. __________ profit: is earned when total revenue is greater than the economic costs. Firms aim to earn as much profit as possible.
- 19. __________ profit: (zero economic profit): total revenue equals total costs.
- 20. __________ down price: level of price that enables a firm to cover its variable cost in the short run.