Part 1.2: Production, costs and revenue

Firm

Marginal returns of labour

Law of diminishing returns

Average returns of labour

Total returns of labour

Productivity

Labour productivity

Returns to scale

Plant

Increasing returns to scale

Constant returns to scale

Decreasing returns to scale

Economy of scale

Diseconomy of scale

Long-run average cost

Optimum firm size

Minimum efficient scale

Internal economies and diseconomies of scale

External economy of scale

External diseconomy of scale

Marginal cost

Average fixed cost

Average variable cost

Average total cost

Long-run marginal cost

Long-run average cost

Total revenue

Average revenue

Marginal revenue

Price-taker

Price-maker

Quantity-setter

Profit

Profit maximisation

Normal profit

Abnormal profit

Technological change

Invention

Innovation

Mechanisation

Automation

Productive efficiency

Dynamic efficiency

Monopolistic competition

Duopoly

Creative destruction