market structures
What market structure has only one firm
Monopoly
What are the four factors of production
Land labour capital and enterprise
State the law of demand
As price increase QD falls and vicea versa
how do you calculate TC
FC + VC
What market structure does not engage in competitive advertising
Perfect competition
Explain the term derived demand
When a FOP is not demanded for its own sake but for its contribution to the production of a product
explain snob goods
As the price increases so does QD as they are seen as a status symbol
Cost saving techniques a firm enjoys as the increase output
Economies of scale
When price rarely changes in oligopoly it is known as
Price rigidity
The return on any FOP in excess of its supply price is know as
Economics rent
explain 2 characteristics of a given good
Few to no substitutes
people on low incomes buy it
a need
How does a firm calculate profit
TR - TC
What price discrimination involves discounts for buying in bulk
Second degree
What is capital widening
When the ratio of capital to labour stays the same as you employ extra capital
What causes a movement along the demand curve
A change in price
can A firm stay open in the long run if AR=AC, explain
Yes because normal profits is included in Zach
What does the HHI indicate
how competitive the market is
Explain MRP
how much extra profit by employing extra labour
What is market demand
Total QD BY ALL CONSUMERS
Explain with example a diseconomies of scale
check if Mr Prendergast excepts answe