Flashcards

Definitions of the price system and the microeconomy 3

[Show more]

Preview 8 out of 10 Flashcards

What are external economies of scale?

Cost savings accruing to all firms in an industry as the scale increases.

What is the minimum efficient scale?

The lowest level of output at which costs are minimised.

What is normal profit?

A cost of production that is just sufficient for a firm to keep operating in a particular industry.

What is abnormal profit?

Profit that is earned above normal profit.

What are small and medium enterprises (SMEs)?

Firms with fewer than 250 employees; small firms have fewer than 50 employees.

What are multinational companies (MNCs)?

Firms that operate in different countries.

What is a market structure?

The way in which a market is organised in terms of the number of firms and the barriers to the entry of new firms.

What are barriers to entry?

Any restrictions that prevent new firms from entering an industry.

Flip

Try again

Institution
CIE
Study
Economics
Course
Unit 2 - The price system and the theory of the firm

arthurknight

Member since 3 year 2 documents sold

$7.57

Added

Add to cart

Add to wishlist

100% satisfaction guarantee
Both online and in PDF
No strings attached

Flashcard is linked to this document:

Summary Cambridge International AS Level and A Level Economics Coursebook with CD-ROM, ISBN: 9780521126656 Unit 7 - The price system and the theory of the firm

(0)

14.47

A summary summing up everything you need to know about the price system and the theory of a firm, allowing you to better understand the topic with the help of diagrams.

Summary
• 40 pages

Quick View

The benefits of buying summaries with Stuvia:

Created by fellow students, verified by reviews

Quality you can trust: written by students who passed their tests and reviewed by others who've used these notes.

Didn't get what you expected? Choose another document

No worries! You can instantly pick a different document that better fits what you're looking for.

Pay as you like, start learning right away

No subscription, no commitments. Pay the way you're used to via credit card and download your PDF document instantly.

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.