The Private Firm 4.0 / 5 based on 1 rating ? EconomicsThe Private FirmIGCSECIE Created by: Imogenbn99Created on: 27-10-15 09:51 Average Cost Total cost/output 1 of 38 Average fixed costs Downward sloping line (from left to right) as the fixed costs are shared amoung increasing output 2 of 38 Average revenue total revenue/quantity sold 3 of 38 Average variable Initially downward sloping as increasing returns to labour and economies of scale are achieved with increased output and then they rise with output 4 of 38 Break-even point total revenue = total cost (no profit or loss made) 5 of 38 Co-operative Organisation owned by its workers and they share the rewards 6 of 38 Costs the money paid to produce the g/s 7 of 38 Diseconomies of scale When an increase in the scale of production results in increased average costs 8 of 38 Diminshing returns to labour the allocation of workers to specific tasks in the production line 9 of 38 Division of labour the allocation of workers to specific takes 10 of 38 Economies of scale When output increases leads to reduced total average costs 11 of 38 Firm The company/business that owns one or more factories 12 of 38 Fixed Costs Have to be paid regardless of levels of production 13 of 38 Horizontal integration merging firms at the same stages of production 14 of 38 Increasing returns to labour initially as additional workers are employed their marginal output increases 15 of 38 Industry A group of firms producing similar or same goods 16 of 38 Marginal cost The additional cost of producing an extra unit 17 of 38 Marginal product Additional output gained from the employment of an additional worker 18 of 38 Marginal Revenue The additional revenue gained from selling an extra unit 19 of 38 Monopoly Single firm controls the supply in a market with no competitors 20 of 38 Multinational Co-orporation Company that has outlets in more than one country 21 of 38 Normal Profit Profit level just high enough to keep firms in the industry 22 of 38 Oligopoly Small number of large companies control the market 23 of 38 Partnership A jointly owned business 24 of 38 Primary Industry Extracting raw materials 25 of 38 Private Limited Company Owned by shareholders, but shares are sold privately not on the stock exchange 26 of 38 Productivity Output per worker 27 of 38 Profit Revenue - costs 28 of 38 Public Limited Company Owned by the shareholders from the stock exchange 29 of 38 Revenue Total money obtained from sales 30 of 38 Secondary industry Manufacturing or construction 31 of 38 Sole-trader Single owner of a buiness, usually small scale 32 of 38 Super-normal profit Increased demand in an industry leads firms to make above normall profits 33 of 38 Tertiary industry Provide a service 34 of 38 Total Cost Fixed costs + variable costs 35 of 38 Total Revenue Price X Output 36 of 38 Variable costs Dependent on the level of production 37 of 38 Vertical Intergration merging of firms that are involved in the production of the same product but a different stages 38 of 38
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