Theory of the Firm

Short run Production

Long run production

Define Total Product

Define Average Product

Define Marginal product

Define eventually diminishing marginal returns

Define eventually diminishing average returns

Distinguish between explicit and Implicit costs

Total fixed cost

Total variable costs

Total Cost

Average fixed cost

Average variable cost

ATC

Marginal Cost

Decreasing returns to scale

Economies of Scale

total revenue

Average revenue

marginal revenue

explain the shut-down price

Explain the break even price

Define Diseconomies of scale

Why are Short Run cost curves U- Shaped

Why are Long- Run Cost curves U-Shaped?

What are the goals of the firm other then profit maximisation?

Increasing returns to scale