The Firm (Supply) (Leaving Cert Economics): Flashcards

Business organisations combining resources to create goods/services for profit

Employment, innovation, govt revenue, satisfy consumer needs

$TR = Price \times Quantity$

$AR = \frac{TR}{Q}$

Additional revenue from selling one more unit

$TC = Fixed Costs + Variable Costs$

$AC = \frac{TC}{Q}$

Additional cost of producing one more unit

Period where at least one factor of production is fixed

Period where all factors of production are variable

$MR = MC$

Increasing production leads to lower average costs

Bulk purchasing, labour specialisation, finance, marketing

Firms become too large, causing average costs to rise

Growth/market share, survival, CSR, satisficing, employee welfare