Cambridge AS & A Level Economics
7.5Types of cost, revenue and profit, short-run and long-run production
Types of cost, revenue and profit, short-run and long-run production in Cambridge AS & A Level Economics: what the syllabus expects you to know, the learning objectives and how to practise.
Subtopic109 practice questions5 lessons
Learning objectives
What the syllabus expects you to be able to do.
- 7.5.1Explain the short-run production function: fixed and variable factors, total, average and marginal product, and diminishing returns.
- 7.5.2Define and calculate fixed, variable, total, average and marginal costs and explain the shape of the short-run cost curves.
- 7.5.3Explain the long-run production function: no fixed factors, and returns to scale.
- 7.5.4Explain the shape of the long-run average cost curve and the minimum efficient scale.
- 7.5.5Explain the relationship between economies of scale and decreasing average costs.
- 7.5.6Explain internal and external economies of scale.
- 7.5.7Explain internal and external diseconomies of scale.
- 7.5.8Define and calculate total, average and marginal revenue.
- 7.5.9Define normal, subnormal and supernormal profit.
- 7.5.10Calculate supernormal and subnormal profit.
Lessons
- Full access
Long-run costs and economies of scale
45 min
- Full access
Normal and supernormal profit and the shutdown decision
40 min
- Full access
Revenue and the profit-maximising output
45 min
- Full access
Short-run costs: total, average and marginal
45 min
- Full access
Short-run production and diminishing returns
40 min
Join to read every lesson, or see what Full access includes.
Sample question
A sample question on this topic. Answer it, check it, then read the worked answer.
Turn Types of cost, revenue and profit, short-run and long-run production into a strength.
Practise with instant marking, see your mastery grow and get a study plan built around your exam date.