A level Economics..pptxVIP

A-LEVEL Microeconomics basic;;Human wants are unlimited, but Resources are limited (scarce) A central problem therefore exists…we call this the problem of SCARCITY ;;;;;Resources;Three categories of resources;Resources: land;Resources: labour;Entrepreneurship;Resources: capital;A note about financial capital;Opportunity cost;Marginal analysis;Marginal analysis;Marginal analysis;Short-Run v Long Run;Cost concepts;Total costs;Average cost concepts;Average total cost;Marginal cost;Total costs;Inverse relationship: MP MC;John Sloman, Keith Norris: Principles of Economics 2e ? 2007 Pearson Education Australia;John Sloman, Keith Norris: Principles of Economics 2e ? 2007 Pearson Education Australia;Average and marginal costs;Note the marginal-average rule;Long-run situation;Relation between LRAC and SRAC Curves;;;Scales of production;Scales of production;Economies of scale;Constant returns to scale;Diseconomies of scale;Long-run Costs ;Profit Maximisation Sloman Ch 5;Revenue;Revenue;Examining revenue curves in 2 situations;;;;;;Revenue curves and price elasticity of demand;;;Revenue;Determining a) Output where profit is maximisedb) Profit at that output;;;;;The shutdown rule;The shutdown rule (cont.);Revenue, Costs and Profit;Normal, Supernormal, Economic profit;ITEM