3.1.3 Production, Costs And Revenue - Aqa A-Level Year 1 Economics Study Guide Rated A+

Productivity {Ans: Output per unit of input.}3.1.3.5 Average revenue, total revenue and profit {Ans: --Content The difference between average and total revenue. Why the average revenue curve is the firm's demand curve. Profit is the difference between total revenue and total costs. --Additional information Students should be able to calculate average, total revenue and profit from given data.}The difference between the short run and the long run {Ans: Cost curves, which measure the costs that firms have to pay to hire the inputs of production needed to produce output, reflect the period of time being considered. Short-run cost curves differ from long-run cost curves. In microeconomic theory, the short run is defined as the period of time in which at least one of the factors of production is fixed and cannot be varied. This means that the only way in which a firm can produce more in the short run is by adding more variable factors to the fixed factors of production.}Average Total Cost formula {Ans: AFC + AVC}The short run {Ans: The time period in which at least one factor of production is fixed and cannot be varied.}Long-run average cost {Ans: Long-run total