Edexcel A Level Economics A:復習筆記3.4.1 Efficiency
Types of Efficiency An Explanation of the Four Types of Efficiency Allocative Efficiency Occurs at the level of output where average revenue = marginal cost?(AR = MC) At this point,?resources are a...
Edexcel A Level Economics A:復習筆記3.3.4 Normal Profits, Supernormal Profits & Losses
Condition for Profit Maximisation To maximise profit firms should produce up to the level of output where?marginal cost (MC)?=?marginal revenue (MR) Calculations To Demonstrate the Profit Maximisat...
Edexcel A Level Economics A:復習筆記3.3.3 Economies & Diseconomies of Scale
Economies & Diseconomies of Scale As a firm increases its?scale of output in the long-run, its?long-run average total costs (LRATC)?will initially?decrease?due to the benefits it receives These...
Edexcel A Level Economics A:復習筆記3.3.2 Costs
The Relationships Between Different Types of Costs Fixed costs?are costs that do not change as the level of output changes These have to be paid whether output is zero or 5000 e.g. building rent, m...
Edexcel A Level Economics A:復習筆記3.3.1 Revenue
Total, Average & Marginal Revenue Total revenue?is the total value of all sales a firm incurs ??? Average revenue?is the overall revenue per unit Marginal revenue?is the extra revenue received ...
Edexcel A Level Economics A:復習筆記3.2.1 Business Objectives
Profit & Revenue Maximisation Profit Maximisation Most firms have the?rational?business objective of?profit maximisation Profits benefit shareholders as they receive?dividends?& also increa...
Edexcel A Level Economics A:復習筆記3.1.3 Demergers
Reasons for Demergers A?demerger?occurs when a firm?sells off?at least one of the businesses it owns, or?splits itself into separate parts?to create two or more firms Reasons For Demergers Reducing...
Edexcel A Level Economics A:復習筆記3.1.2 Business Growth
How Businesses Grow Business growth can be?organic?or?external Organic growth (internal)?is usually generated by gaining greater?market share product diversification opening a new store internation...
Edexcel A Level Economics A:復習筆記3.1.1 Size & Types of Firms
Reasons for Growth & Reasons to Remain Small Many firms start small & will grow into large companies or even?multi-national corporations?(Amazon started in a garage) Reasons Why Firms Grow ...
