microeconomics 3 0.0 / 5 ? Economicsproductions, costs and revenueA2/A-levelAQA Created by: EmilySh02Created on: 04-02-19 12:24 production converts inputs or factor services into outputs of goods and services 1 of 26 short-run production occurs when a firm adds variable factors of production to fixed factors of production 2 of 26 long-run production occurs when a firm changes the scale of all the factors of production 3 of 26 productivity output per unit of input 4 of 26 labour productivity output per worker 5 of 26 capital productivity output per unit of capital 6 of 26 productivity gap the difference between labour productivity in the UK and in other developed economies 7 of 26 specialisation a worker only performing one task or a narrow range of tasks 8 of 26 division of labour different workers perform different tasks in the course of producing a good or service 9 of 26 trade the buying or selling of goods and services 10 of 26 exchange to give something in return for something else received 11 of 26 short run the time period in which at least one factor of production is fixed and cannot be varied 12 of 26 long run the time period in which no factors of production are fixed and in which all the factors of production can be varied 13 of 26 fixed cost cost of production which, in the short run, does not change with output 14 of 26 variable cost cost of production which changes with the amount that is produced, even in the short run. 15 of 26 total cost the whole cost of producing a particular level of output 16 of 26 average cost total cost of production divided by output 17 of 26 long-run average cost long-run total cost divided by output 18 of 26 economy of scale as output increases, long-run average cost falls 19 of 26 diseconomy of scale as output increases, long-run average cost rises 20 of 26 technical economy of scale a cost saving generated through changes to the 'productive process' as the scale of production and the level of output increase 21 of 26 internal economy of scale cost saving resulting from the growth of the firm itself 22 of 26 external economy of scale cost saving resulting from the growth of the industry or market of which the firm is a part 23 of 26 total revenue all the money received by a firm from selling its total output 24 of 26 average revenue total revenue divided by output 25 of 26 profit the difference between total sales revenue and total costs of production 26 of 26
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