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Firm theory (HL)

ProductionA productis a good you can sell.

Total production (TL)(http://nimbix.net/wp-

content/uploads/2013/11/total_product_curve.png)

The curve is first convex, then concave.

Marginal (MP) and average production (AP)

(http://wps.prenhall.com/wps/media/objects/988/1012152/chapter06/6.5.gif)

Long-runa time period in which all factors of production are variable

Short-runa time period in which at least 1 factor of production is fixed

http://nimbix.net/wp-content/uploads/2013/11/total_product_curve.pnghttp://nimbix.net/wp-content/uploads/2013/11/total_product_curve.pnghttp://nimbix.net/wp-content/uploads/2013/11/total_product_curve.pnghttp://nimbix.net/wp-content/uploads/2013/11/total_product_curve.pnghttp://wps.prenhall.com/wps/media/objects/988/1012152/chapter06/6.5.gifhttp://wps.prenhall.com/wps/media/objects/988/1012152/chapter06/6.5.gifhttp://wps.prenhall.com/wps/media/objects/988/1012152/chapter06/6.5.gifhttp://wps.prenhall.com/wps/media/objects/988/1012152/chapter06/6.5.gifhttp://nimbix.net/wp-content/uploads/2013/11/total_product_curve.pnghttp://nimbix.net/wp-content/uploads/2013/11/total_product_curve.png

8/11/2019 Fim Theory HL

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Revenue

Total revenue (TR)

The ARfunction will be the same as the demand function.

PERFECT COMPETITION

IMPERFECT COMPETITION / MONOPOLY

MR will be 2x as steep as AR