A-level
Economics A-level:
Costs and Revenues
Learn It
Check you know the main principles by reviewing the list of different topic areas, either click on the topic heading to quick learn the whole topic or pick individual principles to brush up.
Costs and Revenues
The law of diminishing marginal returns
- Total, average and marginal product
- Why the marginal curve cuts the average curve where it is momentarily flat
- The law of diminishing marginal returns
Costs and their curves
- Total, marginal and average costs
- Why the marginal curve cuts the average curves where they are momentarily flat
- How the cost curves are derived
Worked example of costs and their curves
Economies of scale
- From short run to long run
- The sources of economies of scale
- The sources of diseconomies of scale
- The difference between internal and external economies of scale
Revenues and their curves
- Total, marginal and average revenues
- The total, marginal and average revenue curves
- When the AR curve is a 'normal' downward sloping demand curve
- When the AR curve is a flat demand curve
Profit
Test It
Now you have learnt the main principles, test yourself with these sample questions. If you get stuck, go back and review the principle again.
Revise It
Print these out and carry them with you!