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Isis Perfect competition (Average total cost long run (economies of scales…
Isis Perfect competition
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average total cost
total cost (TC) divided by the number of goods produced (the output quantity, Q)
super normal profit
profit of a firm over and above what provides its owners with a normal (market equilibrium) return to capital
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average variable cost
is a firm's variable costs (labour, electricity, etc.) divided by the quantity of output produced.
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sunk cost
The first thing you buy in a business, you don't have to pay again
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profit maximization
The short run or long run process by which a firm may determine the price, input, and output levels that lead to the greatest profit