2.3 The Firm - Costs of Production
Need to KnowAt the end of this section the student should be able to:
evaluate the economic role of firms in an economy, explaining how positive and negative incentives influence economic activity graphically represent, calculate and describe the relationship between total, marginal and average revenue and costs apply the distinction between the short and long run in analysing the implications of a firm’s costs and revenue situation explain and illustrate the conditions for profit maximisation in terms of marginal cost and marginal revenue analyse the role of economies and diseconomies of scale in determining the size of firms critique the reasons a firm may pursue objectives other than profit maximisation |
Resources |